Bitcoin’s price surge was definitely a good thing given that it has enriched hodlers wallet while also giving the community something to focus on. Travis Kling who has taken a look at the market believes that central banks themselves have led to the recent price rally. The founder of Ikigai Asset Management is also confident that Bitcoin is a hedge against the Federal Reserve’s monetary and fiscal policy.
Kling Points Out Manipulation of the Economy by Central Banks
According to a media outlet’s report on April 4, Travis Kling is disappointed with the way the Federal Reserve manipulates the economy by increasing interest rates. In the U.S., for instance, the interest rates were increased four times in 2018 alone which was hammered upon by Donald Trump.
Kling, on the other hand, believes that people are also tired of this manipulation and as such, it has driven them to Bitcoin. According to him, the most recent spike in price was caused by central banks themselves because of the level of distrust people have in them.
In his own words:
I would say broadly it was central banks [that caused the recent rally..We had the Fed do a complete U-turn into dovish mode. Then everyone else [European Central Bank and Bank of Japan] followed.
Increasing Manipulation of Interest Rates to Push People to Bitcoin
Furthermore, the founder noted that with an increasing manipulation in interest rates which will take a toll on the economy and stock market, more people will become aware. When that happens, there will be a massive influx of people who will rather use Bitcoin as a hedge against these monetary policies.
Kling also noted that Donald Trump’s intervention has so far been effective to ensure that this year, there will be no increase in rates. However, that might not entirely be the case given that Larry Kudlow, the White House’s chief economic adviser noted that the Federal Reserve makes its own decision without being influenced by the U.S. president.
More Events in the Space Targeting Bitcoin
Events of this nature just add up to what’s currently happening in the space. Bitcoin’s price spiked to $5,000 on April 2 for the first time. It is comfortably sitting at that price level as at press time, and many have begun to wonder if this is the end of the cryptocurrency winter. Asides its price, its market capitalization on April 3 went as high as $92 billion before declining to its current $88 billion.