What’s Driving Up Bitcoin Price? Central Banks, Says FT Reporter

The Financial Times’ chief correspondent for international finance has argued that central banks can ironically be credited for igniting Bitcoin’s price.

In a column for Nikkei Asian Review on Aug. 21, Henry Sender said that banks’ dovish policies are spurring an increasing recognition of cryptocurrencies as safe-haven assets.  

Hedging big macro risks with Bitcoin

Analysts anticipate more dovish announcements from the Federal Reserve at this year’s central banking meeting in Jackson Hole, Wyoming, later this week.

In July, Fed Chairman Jerome Powell cut interest rates for the first time in over a decade, continuing the dovish tone set by the European Central Bank.

In China, the yuan fell below the watershed mark of 7 to the U.S. dollar on Aug. 5 and government bonds continue to be plagued by volatility, with little assurance of solid yields.

Against this backdrop, Sender argues that the actions of developed market central banks are turning Bitcoin from a speculative instrument…