Our Crypto Talk
Our Crypto Talk

@ourcryptotalk

8 Tweets Apr 22, 2023
FED IS PRINTING MORE MONEY !
Their balance sheet has surged by $400 billion in two weeks ๐Ÿ˜ฎ
Will this lead to another #Bitcoin bull run?
๐Ÿงต(1/8)
โ€ข FED is doing this for Quantitative Easing.
โ€ข Quantitative easing is a form of monetary policy where a central bank acquires securities.
โ€ข These include government bonds or mortgage-backed securities, to increase the money supply and bank reserves.
๐Ÿงต(2/8)
โ€ข By doing so, the central bank is essentially adding assets to their balance sheet and pumping US dollars into the banking system.
โ€ข This practise increases the domestic money supply and liquidity for banks.
๐Ÿงต(3/8)
โ€ข The vast majority of fiat currency out there is not actually physical, but rather credit that has been digitally created in a bank ledger.
โ€ข Debt creates new money, as not all debt is backed up by actual US dollars.
๐Ÿงต(4/8)
โ€ข This increase in money supply can be inflationary and has historically been bullish for assets like #Bitcoin, as it is a hedge against money printing.
โ€ข It's important to note that CPI inflation is not the same as money supply, as it also includes other factors.
๐Ÿงต(5/8)
โ€ข The last time the Federal Reserve printed this much money, it started a major bull market.
โ€ข It will be interesting to see if history repeats itself, and if we will see another bullish run in Bitcoin
๐Ÿงต(6/8)
Are we going to see $BTC break 30k this weekend?
๐Ÿงต(7/8)
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๐Ÿงต(8/8)

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