The US Federal Reserve reduces its public budget, which has sparked discussions about what this might mean for Bitcoin (BTC) and the wider financial market. Modern data shows a noticeable decrease in the Fed’s reserve’s possessions, raising concerns about liquidity, investor confidence and what can be expected after that as fixed interest rates have been maintained.
A tremendous shift in the federal reserve of the federal reserve
According to Modern job Under Kobeissi’s message on X, the federal reserve budget has decreased by $ 17 billion over the past thirty days. It is now $ 6.7 trillion, which is the lowest since April 2020. This represents a total discount of $ 2.3 trillion since the Federal Reserve began tightening in April 2022.
This reduction represents about 48 % of the assets of $ 4.8 trillion in assets that the Federal Reserve bought during the aftermath. Nowadays, the Federal Reserve has $ 4.2 trillion in US Treasury bonds and 2.2 trillion dollars in mortgage -backed securities.
In March, the Central Bank announced a slowdown in the pace of monthly tightening (QT). This may get worse because it is looking for alternative ways to maintain the economy and see it Keep interest rates unchanged this week. It is worth noting that the bank reduced it from $ 60 billion to $ 40 billion, indicating a more cautious approach to moving forward.
Although these numbers may seem technical, the most important meaning is a clear flow of liquidity in the prevailing market. The Federal Reserve adds funds to the system, which can lead to the amplification of the circulating dollars and thus its value. This often investors search for other valuable stores, such as Bitcoin.
Inflation, width of money and risk origins
It should be noted that BTC supporters are closely attention. For example, Darren Vincentein, co -founder of Core Scientific recently on his page X that Bitcoin exists as a reaction to what he describes as printing money not designated by the Federal Reserve and other central banks.
In his book X Post, Darren claimed that approximately 80 % of the supply of money in the United States worth $ 21.6 trillion over the past 25 years without general supervision. This ultimately enhances the idea that bitcoin provides a transparent and decentralized alternative.
It is important to note that with the Federal Reserve tightening its policy, Bitcoin has attracted increasing attention from institutions. Between 7 and 8 May, Etfs Bitcoin US Bitcoin saw 260 million dollars flow During a period of two days.
Although less than the highest daily levels last week range between $ 400 and 600 million dollars, data from Farside Investors shows the increasing confidence BTC crossed $ 100,000 Mark this week.
The impact of the uneven interest rate on bitcoin
After May 7 FOMC meetingThe Federal Reserve resumed bond purchases as President Jerome Powell confirmed that interest rates will remain fixed at 4.25 % – 4.5 %.
Since the meeting, Altcoins has shown strength, but analysts expect Bitcoin’s dominance. This decision, which is in line with market expectations, slightly strengthened bitcoin and altcoin.
However, all risk assets benefit from whether the Federal Reserve model for injecting liquidity into the market remains unanswered.
Godfrey Benjamin
Benjamin Jodfrey is a blockchain lover and journalists who enjoy writing about the real life applications of Blockchain technology and innovations to pay public acceptance and complementarity all over the world for emerging technology. His desires to educate people about encrypted currencies inspire his contributions to the media and the famous Blockchain sites. Benjamin Jodfrey is a fan of sports and agriculture. Follow it xand LinkedIn
Responsibility: Is market research before investing in encrypted currencies? The author or post does not bear any responsibility for your personal financial loss.
partner: