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Bitcoin [BTC] and other cryptocurrencies will not lead to change in monetary policy, says President of Swiss National Bank

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Bitcoin [BTC] and other cryptocurrencies not a major hurdle for monetary policy, says President of Swiss National Bank
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The whole cryptocurrency has been under the radar of all the government and financial service providers across the globe ever since Bitcoin [BTC] and other cryptocurrencies hit their all-time high. Since then, the currency has been either accepted or dismissed by key market makers.

Moreover, Bitcoin [BTC], the largest and the very first cryptocurrency in the world, was declared a store of value and rose to fame as digital gold. Even the U.S Securities and Exchanges Commission [SEC]’s commissioner, Hester Peirce stated that Bitcoin [BTC] and other cryptocurrencies do indeed have similarities to gold.

To add on, financial behemoths such as Goldman Sachs and Nasdaq were quick to act on the new emerging technology. In 2018, news erupted that Goldman Sachs will be rolling out its own Bitcoin [BTC] derivates trading facility for its clients.

Nonetheless, there are still well-known players in the trading markets that stand against the prosperity of the cryptocurrency market. This includes the likes of Nouriel Roubini aka Dr. Doom, an American economist known to have predicted the 2008 financial crisis, and Jamie Dimon, CEO of JPMorgan Chase, who went on to claim that Bitcoin is fraud.



Earlier today, Thomas Jordan, President of Swiss National Bank, also gave his perspective on the king of the cryptocurrency market, Bitcoin, during a discussion in Davos. The President stated that he does not see cryptocurrencies leasding to a major change in policy making. However, Jordon did appreciate the use case of the technology underlying the currency, Blockchain. According to Bloomberg, he stated:

“As long as we have influence on the value of this unit of account, so the change of interest rates, the change of the size of the balance sheet, the exchange rate, etc., the power of monetary policy will remain.”

Additionally, the President had expressed his doubts on the benefits of cryptocurrencies even though the digital currencies market gained a lot of traction from central banks across the globe. Along with this, Thomas Jordan does see the need for regulatory bodies to issue its own digital currency. In the report by Bloomberg, he was noted stating:

“If central banks really start issuing digital currencies, that will a big have impact on the functioning of the financial system”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

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Analysis

Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market

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Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market
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Bitcoin’s much-awaited Golden Cross, which many analysts claimed will lead to a resurgence of a bullish market, has been confirmed. The intersection of the 200-day moving average and 50-day moving average, which indicates the Golden Cross, was achieved over the past few hours.

Earlier today, the top cryptocurrency saw a massive rise after days of sideways movement. Bitcoin’s ascendance saw it break the $5,350 resistance level, which eToro’s Mati Greenspan had previously suggested will consolidate “buying pressure.”

Source: TradingView

Additionally, a major psychological level of $5,500 was also surpassed less than three weeks after Bitcoin broke the $5,000 mark.

The Golden Cross theory holds credibility among analysts in the cryptocurrency realm as it infers that the coin’s average price is above its 200-day equivalent. For the first time in over a year, the cryptocurrency market has seen its 50-day MA move above the 200-day MA, which according to many is a sign of a bullish market.

On the opposing side of the Golden Cross indicator is the Death Cross, where two indicators cross over into a bearish market i.e. the 200-day MA moves above the 50-day MA. The Death Cross manifested in April 2018, after the prices went into a free fall following the December 2017 high.

In April 2018, BTC was priced at just over $7,000, following which it lost more than 50 percent of its price by the end of the year. The price of the king coin has recovered exceedingly well in 2019 however, winning back almost 50 percent of its lost value.

Many analysts, including Greenspan, agree that the crossing of the two moving averages is a clear testament to the return of the bull market. Although he didn’t quite use those words, Greenspan tweeted,

“Ladies & Gents… The Golden Cross!
Bitcoin’s 50-day moving average (gold) crossing above her 200-day moving average (blue). 📈
This is yet another sign that we’re back in a🐂market. 🚀🌛”

However, in an exclusive interview with AMBCrypto last week, Greenspan had stated that the Golden Cross theory is a “lagging indicator,” as the Death Cross was last seen in April 2018, months after the market took a bearish turn.



In his view, the 200-day moving average is the key indicator. On April 2, Bitcoin broke this mark for the first time since March 2018, by recording a massive 17 percent daily gain and rising above $5,000.

Based on historic price changes with reference to the Golden Cross, the last time the 50-day MA soared above the 200-day MA, price of Bitcoin rose by over 8000 percent from $246 in October 2015 to almost $20,000 in December 2017. Given past market movements, the current market scenario, and the optimism in the air, the Golden Cross may just have initiated the Bitcoin bull market.





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