With the core idea of Bitcoin being to thwart the banks and their poor monetary policies that led to the 2008 financial crisis, it would make sense that Bitocin reacts positively when, under a new cloud of a global crisis, the Federal Reserve decides to print more money.

As part of its strategy to help prop up the ailing economy that has been struck by the Covid-19 outbreak the Federal Reserve in the USA, as well as other major central banks across the world, have started implementing quantitative easing. This policy means that more and more money is being created to help boost liquidity.

The concern is however that money printing may lead to direct liquidity, but its greater impact could cause hyperinflation in the US dollar. This is something that is very much against Bitcoin’s mantra as it is designed to be anti-inflationary.

So, as the Fed continues to print more and more money, it looks as if it could be boosting Bitcoin. There has already been some evidence that Bitcoin’s price has boosted on announcements of new waves of money printing, so is there a real correlation building?

Similar signs

According to the well-respected PlanB on Twitter, the analyst who created Bitcoin’s stock-to-flow price model, he argued that the cryptocurrency benefitted from money printing by looking back at instances as far back as 2013.

“Very interesting that $1.5T 2013 QE3 coincides with 2013 #bitcoin bull market. What will 2020 QE4 bring? $2T and counting ..,” he tweeted.

Very interesting that $1.5T 2013 QE3 coincides with 2013 #bitcoin bull market. What will 2020 QE4 bring? $2T and counting … https://t.co/bhktjVFTMW — PlanB (@100trillionUSD) April 17, 2020

More so, in the recent news when the Fed announced it would print infinite money if needed, there was another direct pump in the Bitcoin price to this news. The fact that the Fed is willing to risk hyperinflation to try and salvage the economy suddenly makes Bitcoin, as a store of value and one anti-correlated to the markets, that much more attractive.

In other crises gone by, there has not been too much in the way of safe haven assets other than gold — which is also known to grow in value when the dollar dips. But in today’s market, Bitcoin has emerged and is showing more and more signs of working as a safe haven in this time of Coronavirus panic.

The reason for Bitcoin

Bitcoin may have been created to be an alternative financial system for a crisis like we saw in 2008. However, since then it has changed how it works, and it’s true designation. Yet, the world faces another 2008-level crisis, if not bigger, and it looks as if Bitcoin can still come to the rescue as an alternative store of value in the face of a debasing US Dollar.