Bitcoin confirms ‘safe haven’ status just as Trump wants lower interest rates

If you open a business newspaper this weekend, the front page will probably feature a graph showing that bloody-red stock market or a nervous stock trader on Wall Street. During the stock market carnage of 2007-2008, we called that ‘cue nervous trader’.

And all that while Bitcoin’s loss over the past seven days was … 0 percent. Does this confirm Bitcoin’s status as a safe haven or had the largest digital currency already fallen far enough in the weeks before?

It is also notable that President Donald Trump, as we predicted months ago, suddenly wants a lower interest rate from the Federal Reserve.

All signs on the wall that are good for crypto. Allow me to explain.

Powell

In my humble opinion, there are two people who can control the global economy over the next few days. The first is Ursula Von der Leyen, who can steer the talks on a possible trade deal between the United States and the European Union, while the second one is Jay (some say Jerome) Powell, chairman of the Federal Reserve, aka the US Central Bank.

Just minutes before Powell was scheduled to speak on Friday, Donald Trump posted on social media, calling upon the former to cut interest rates.

Powell indicated that he did not think that was necessary at this time, so we’ll need to wait and see how Trump reacts to that.

Crypto

Losses on the crypto markets remained fairly limited this week, especially considering the huge drops on some stock exchanges. While altcoins lost between 5 and 10%, Bitcoin actually did exceptionally well with a loss of zero percent at the time of writing (in the last seven days).

Of course, it should be noted that Bitcoin has already fallen by 30% since its peak in December last year. That ‘safe haven’ status may therefore be premature, but if Bitcoin remains stable again this week while the stock markets continue to fall, that correlation with the technology exchange Nasdaq is of course disappearing.