Federal Reserve announced rate cuts in the reserve ratio for banks to 0%, and last this happened was in December of 2008, the year of a horrific crisis whose shocks the world continued to feel for years. The recent downfall in the market seems to be a strong indicator, and alarms across the world are already ringing.
BREAKING: The Federal Reserve just cut the interest rates to zero and printed more than $700B to stimulate the economy.
The last time the Fed cut rates on an emergency basis was in the December 2008 financial crisis.
— Binance.US 🇺🇸 (@BinanceAmerica) March 15, 2020
While all major industries seem to have some kind of experience in dealing with a crisis, it would be the first time for the crypto industry as it came into existence only in 2009. Reactions from the industry are already pouring down as Binance Chief Changpeng Zhao and Morgan Creek Capital boss Anthony Pompliano have already criticized the Fed, arguing that the authorities will never bail out people’s bank accounts this way.
Financial markets across the globe are crashing for the past few weeks, and the crypto industry is, sadly, no exception. Bitcoin has lost nearly 50% in the last few days and has dipped below $5,000 for the second time in 7 days.
No matter how much the financial pundits say that things are under control, markets are bleeding and that’s a fact. The earlier the authorities end the denial mode and start accepting the downfall, the better will they stand a chance to tackle it and avoid an impact as gigantic as 2008.