Bitcoin Steady Near $9K as Trump Touts ‘Gift’ of Negative Interest Rates

Bitcoin has ended a four-day losing trend and is trading steady around $9,000 amid rising speculation the U.S. could eventually adopt negative interest rates.

The top cryptocurrency by market value rose nearly 3% on Tuesday, having suffered losses in the preceding four days – the longest daily losing run in over two months, according to CoinDesk’s Bitcoin Price Index. 

Tuesday’s price rise coincided with U.S. President Donald Trump’s renewed call for negative interest rates. “As long as other countries are receiving the benefits of Negative Rates, the USA should also accept the “GIFT”. Big numbers!,” Trump tweeted. 

Under a negative interest rate policy (NIRP), banks are required to pay interest rates for parking spare cash (surplus over and above the norm) with the central bank. Essentially, commercial banks are penalized for holding excess cash in a bid to force them to boost lending to businesses and consumers.