In late July of this year, in an attempt to push money into the economy to avoid a feared recession, the United States Federal Reserve Bank lowered the inter-bank-funds interest rate by a quarter point from 2.25% to 2.00%. After a short-lived rally from around $10,000 to near $12,000 in early August, the price of bitcoin had fallen back to $9,500 by late August. In mid-September, the Fed cut rates by another quarter-point, to 1.75%, and in the hours that followed, the price of bitcoin fell from the $10,000 range to the mid-$9,000s. By the following week it had dropped further, to the $8,000 range. And when the Fed cut rates another quarter-point, to 1.5%, in late October, within four weeks bitcoin had fallen to below $7,000. Bitcoin Value Theory One bitcoin-value theory holds that easing of government currency (such as dollar, yen, euro, or yuan) boosts the strength of limited-supply assets and currency such as bitcoin, or gold. As interest rates are pushed lower and dollars become less expensive and more available, the value of limited-supply assets such as bitcoin increases. Pushing dollars into full-employment economy of the United States leads to more dollars chasing the same amount of goods (bread, gasoline, houses), which leads to consumers bidding up prices for those goods. This is very noticeable in the residential housing market, where prices of for-sale properties increase or decrease as buyer access to cash and credit increases or decreases.