As the COVID-19 pandemic continues to unfold with dire consequences across the globe, desperate measures to keep the economy afloat continue to be taken by globe governments. Currently the nigh notable instance is the U.S., which recently announced an unlimited quantitative easing plan and besides reached an understanding for a $2 trillion stimulus bundle.

The unlimited quantitative easing process will entail the Federal Reserve purchasing assets "in the amounts needed to support smooth market place functioning" and after the announcement was fabricated Bitcoin (BTC) price rallied virtually 10% from $6,300 to $6,900.

At the moment, Bitcoin has dropped to $vi,630 and crypto markets accept remained fairly stable throughout the day.

Crypto market information. Source: Coin360

Gilded and argent take also recovered after several days of losses. Gold price dropped by more than 12% in ten days only has since recovered to the $1,620-$1,680 price range seen betwixt Feb 20 and March 9.

Argent USD/m2 nautical chart. Source: TradingView

Meanwhile silver has hit its generational low confronting the Us dollar when money supply adjusted, a figure to go on in mind while the Fed prints billions of dollars. In the last 3 days, silver has seen modest gains, surging from $12 to $14.five.

Will QE salvage markets or irreparably damage the dollar?

As the U.S. government sets out to spend billions of dollars this week, stock markets reacted positively and the Southward&P 500 rallied over 9% on March 24, the biggest daily surge since 2008. The Fed'due south QE efforts may prop upward stock prices for now simply the long-term consequences volition likely take a significant impact on the economy for years to come.

While stock markets are currently reclaiming some of the footing lost during the past ii weeks, the worst may exist yet to come as the total impact of the Coronavirus and its effects on the population and on the economy are non notwithstanding visible.

At the time of writing the number of newly confirmed cases is growing at an alarming rate. Just yesterday, in the U.South. the number of confirmed cases grew past x,270 to a total of 54,453. At this rate, the total number of confirmed cases in the U.S. may soon overtake People's republic of china's.

Cumulative total number of COVID-19 cases in the U.S. Source: CDC

As for Bitcoin price, it is showing stability and painting college highs and lower lows on the daily time frame. Information technology seems probable that Bitcoin will continue to concur its own as the dollar inflates, although it's worth noting that today's difficulty adjustment may cause the digital asset to lose value equally mining becomes cheaper.

BTC USD daily chart. Source: TradingView

Investors spotter safe-haven assets in a time of "unlimited" currency

To the surprise of many investors, precious metals had been falling alongside global equity markets which on March ix saw their worst performance since the 2008 financial crisis. However, this isn't entirely new for gilt or silver.

In 2008, prophylactic-oasis avails behaved similarly, dropping alongside stocks and rallying after the announcement of the Fed's quantitative easing plan. For the time being, gold and silvery seem to be dorsum to providing security for traders and Bitcoin has been post-obit the pb by holding its own in what could exist its biggest test as a unique nugget course so far.

The Fed'southward unprecedented new measures highlight ane of the primary value propositions of decentralized cryptocurrencies like Bitcoin, the issuance rate cannot exist tampered with.

What's next for Bitcoin?

As the current global financial meltdown has demonstrated, precious metals also have their weaknesses. On March 23, 3 of the world'southward largest aureate refineries appear that they would stop production for at least a week in guild to comply with requests by local authorities. How this volition weigh on toll is even so to exist determined.

Bitcoin, on the other hand, operates on a decentralized system that ensures that no geo-specific upshot tin can change its production. Unlike precious metals, Bitcoin's system allows miners to go out and bring together the network without severely impacting the amount of Bitcoin mined.

Over the past month the U.S. Dollar has also seen steady gains throughout the crunch due to the market participants quick go out from stocks and other risk-on avails. So far DXY has risen six.35% in March but it has fallen by nearly 1% since the Fed'southward announcement of unlimited QE.

Coincidentally, Bitcoin is gear up to have its next halving effect in April which will lower its issuance charge per unit drop from 12.five BTC to six.25 BTC every 10 minutes. This means the supply volition increase less than 2% per year, and volition drop to less than one% after 2024, a rate which is similar to the average rate of increase of the gold supply.

As the Fed sets out to print an unlimited supply of dollars, Bitcoin is in a prime position to get the adjacent ultimate store of value currency equally its issuance charge per unit remains relatively unaffected by the COVID-nineteen pandemic and the upcoming halving continues as programmed.

The views and opinions expressed here are solely those of the author and exercise not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.