Bitcoin rose by $2,000.00 in the last 24 hours following the announcement of massive cash injections into the financial system by the US Central Bank (FED).
Meanwhile, altcoins follow Bitcoin with the highlight for Stacks, which has just reached $1.07.
Cash Injection Makes Bitcoin Soar
One of the causes for the skyrocketing price of bitcoin is linked to its thesis of scarcity. Bitcoin is scarce at ~21 million units, while state currencies (dollar, real and euro) can be printed infinitely.
And the government printing is happening, with the FED inflating the amount of dollars in the market by 2 trillion and announcing loans of US$300 billion to banks that are struggling due to liquidity problems (lack of cash due to large exposure to depreciated Treasury bonds ).
Called the “discounted credit window”, this is a tool that allows the Central Bank to lend money at lower rates and in the short term to help with the liquidity of the financial system.
Would you stick with a scarce good or one that can be created and manipulated at the whim of bureaucrats?
STX goes up 99%
Stacks (STX) is up 99.92%, passing the $1.07 mark over the past 7 days.
The increase in the layer of smart contracts based on Bitcoin comes when the developers of Ethereum announce that April 12th will be the date for the release of the US$ 25 billion in eth locked in stake for more than 1 year.