Bitcoin's rise being Fed by Yellen

US security markets took the release of the Fed minutes in stride on Wednesday as most analysis said March was on the table for a rate hike.

Investors seem to take that in stride since Fed chief Janet Yellen has been using this script for some time and as I wrote yesterday there will not be any March madness in Fed rate complex.

However that does not mean the “currency” markets were unchanged. Bitcoin, the crypto digital-currency moved from $1,078 to $1,137 over the two-day trading period. That’s a 6 percent move on the words of the Fed, which tells me no Fed hike in March and the bitcoin move is a hedge against a weakening dollar. [Editor’s note: Bitcoin is now trading $1160 on Thursday]

As I have said many times, I use bitcoin as a canary in the coal mine, since its adoption is widely used as a hedge for devaluation in currency markets by large financial institutions.

Bitcoin is no longer a dark web currency for nefarious activities. The Securities and Exchange Commission is about to approve a bitcoin ETF administered by the Winklevoss twins of Facebook fame.

Keep an eye on bitcoin’s moves over the next three weeks for a good barometer of what the sentiment is for the March Federal Reserve meeting.


1 thought on “Bitcoin's rise being Fed by Yellen

  1. Pingback: Macy’s looking to maul malls | GRAY'S ECONOMY

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.