The risk of easing, apparently, was one of the triggers for the recent bitcoin growth, suggests Deutsche Bank executive. In his opinion, the policy of central banks is too aggressive, and investors are moving to alternative currencies.

Jim Reid, global head of thematic research and credit strategy at Deutsche Bank, suggested that the recent bitcoin growth was fueled by hints from the major central banks to lower interest rates.

“If central banks are gonna be this aggressive, then alternative currencies do start to become a bit more attractive."

Reid recalled the recent speech by US Federal Reserve Chairman Jerome Powell, who said that there is a possibility of interest rate cut due to the current economic uncertainty and inflation risks. Following Powell's statement, the US dollar fell against major fiat currencies and reached a three-month low against the euro.

According to Reid, if global central banks continue their aggressive policy of easing, then the existing system of fiat currencies will lose stability and cease to exist in its current form. Similar thoughts were voiced out by Reid in November 2017, when bitcoin was moving to its all-time high of $20,000.

Meanwhile, bitcoin, on the contrary, continued to grow and exceeded $12,000, and its market capitalization overcame $220 billion. Bitcoin dominance index exceeded 60% for the first time since April 2017.

Reid also noted that the recent surge in cryptocurrency prices was partly caused by the upcoming launch of Facebook's Libra announced on 18 June and scheduled for 2020. Since then, bitcoin jumped in price by 30% from $9,000 to $12,616.