Alex Borzak
The Bank of Japan is expected to take steps aimed at stabilizing markets, which devalued a lot last week. However, Asian markets are looking better today. After the first wave of the coronavirus related panic, the optimist seems to be restoring.
Will the Bank of Japan help cryptocurrencies?
First of all, it's interesting to note that over 40 billion dollars left the cryptocurrency market last week but the situation seems to be improving a bit right now. It looks like the investors have calmed down a bit and some of them are returning to the market. The same holds true for Asian stock markets.
According to Reuters, the Bank of Japan is going to take all the steps necessary to stabilize the markets right now. These words reassured the international community that national banks around the globe may well unite efforts to help the global economy survive the crisis.
That said, the BOJ joined the U.S. Federal Reserve and the People's Bank of China. A stunning 500 billion yen (or 4,62 billion dollars) was offered as 2-week ETFs through market transactions. According to Yoshimasa Maruyama, chief economist at SMBC Nikko Securities, the BoJ has been focused on buying assets, which means the central bank may make ETF purchases more flexible in order to back stock markets and prevent them from collapsing or shrinking.
Cryptocurrencies
Let's go back to cryptocurrencies. Will the steps taken by the central bank create some other problems? Will they, for example, undermine fiat currencies? If the latter is the case, this is definitely going to be a positive sign for Bitcoin and altcoins.
We remind you that the Fed is likely to take some urgent and extreme steps to prevent an economic collapse. At the end of the past week, the Fed's statement confirmed this intension to stimulate markets. Chances are, the Fed is going to cut interest rates again.
Alex Borzak
