• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
Breaking News: Binance.US Takes Action Amidst SEC Complaint: Delists Over 40 Trading Pairs
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
Bitcoinist.com
No Result
View All Result
Breaking News: Binance.US Takes Action Amidst SEC Complaint: Delists Over 40 Trading Pairs
fed bitcoin

Fed Balance Sheet Nears $6 Trillion, Bitcoin Breaks $7K

Christina Comben by Christina Comben
3 years ago
in Bitcoin, News, News teaser
0

The Federal Reserve’s balance sheet just hit a new record, increasing to a massive $5.86tn. This is thanks to fresh new liquidity aimed to prevent markets from crashing during the coronavirus pandemic. As investors wonder what the end effects will be on fiat, Bitcoin breaks $7,000.


Federal Reserve Balance Sheet Breaks Records

According to Reuters, the US Central Bank’s balance sheet has ballooned by a massive $1.5tn in just three weeks since efforts to avoid economic catastrophe kicked in. Just to give that some context, that figure is the equivalent of more than one-quarter of the size of the entire country’s economy before the crisis hit and:

It will certainly grow larger in the weeks ahead as the Fed keeps piling on assets and the economy likely shrinks.

In a bid to keep markets functioning, the central bank is applying quantitative easing like never before. It is gobbling up mortgage bonds, Treasury securities, and other assets like a game of Pacman. Among its new purchases, Treasury holdings rose to $3.34tn from $2.98tn.

The central bank is also ramping up the use of its liquidity swap lines. These enable foreign central banks to exchange their local currencies for dollars. This figure rose from $348.5 billion to $206.1 billion in just one week.

Shortly after the U.S. Congress signed a $2tn coronavirus stimuli package, ex-presidential candidate Andrew Yang commented:

Where did we get $2 trillion? The American people are catching on.

— Andrew Yang? (@AndrewYang) March 26, 2020

But that was a whole week ago. Now, with the balance sheet nearing $6tn and more spending sprees on the horizon… is fiat headed to the brink of collapse?

Bitcoin Time to Shine

Many economists have warned about the bubble-like economy being on the brink of recession. However, no one predicted that the coronavirus would be the needle that would prick it.

The only choice governments may have is to increase their monetary supply. However, what will be interesting to watch is what happens at the end of the crisis.

After all, the same types of measures were taken in the 2008/9 crisis and the left-over increase in money supply went into asset classes. This time around the money is so much more. It’s possible that another stock market boom begins… But it’s also likely that this will lead to a round of defaults, currency devaluation, and significant inflation.

No one wants Bitcoin to benefit off the back of global suffering. But let’s not forget that Bitcoin emerged out of the ashes of the last global financial meltdown and now people have an alternative.

As billionaire investor Mike Novogratz pointed out yesterday, now, more than ever is Bitcoin’s time to shine as a hard asset that doesn’t debase.

As the Fed’s balance sheet mushrooms out of control, Bitcoin breaks $7k. It looks as if the smart money is already catching on.

What do you make of the Federal Reserve’s latest balance sheet figures? Add your thoughts below!


Images via Shutterstock, Twitter @AndrewYang

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Christina Comben

Christina Comben

Related Posts

Bitcoin

Bitcoin Investors Get Robust Returns In May – How Will Binance Lawsuit Affect Their Gains?

1 day ago
Rare satoshis

Rare Satoshis: The Rising Star In Crypto After BRC-20 And Meme Coins?

2 days ago
Bitcoin Whale Shark

Bitcoin Sharks & Whales Have Bought 93,000 BTC Since April Top: Santiment

1 week ago
Bitcoin

BREAKING: Bitcoin Mining Industry Spared From 30% Tax In US Debt Ceiling Deal

1 week ago
Bitcoin

Bitcoin Taker Buy Sell Ratio At Highest Since Feb, What Does It Mean?

1 week ago
Bitcoin

Bitcoin Shrimps Continue Aggressive Accumulation As Holdings Hit ATH

1 week ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Play Finance

Now Trending

  • Whale Power Unleashed: Mooky Emerges as the Rival Meme Coin...

    7 days ago
  • Exploring the Meteoric Rise of Mooky: Could It Be the Next...

    7 days ago
  • Discover the Next Big Thing: Mooky.io Presale Boasting Fair...

    1 week ago

Top Casinos

Trust Dice
Trust Dice
Punt Casino
Punt Casino
mBit
mBit
1xBit
1xBit
K8
K8

Press Releases

  • DigiToads gains tremendous presale traction among Ripple...

    11 mins ago
  • dYdX Price Prediction for June

    3 hours ago
  • InQubeta (QUBE) Presale Sees High Adoption Rate Among...

    4 hours ago
  • Earn Interest with Uninvested Crypto Assets at Blofin

    4 hours ago
  • Cosmos (ATOM) challenger utilizes Blockchain AI –...

    5 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance

© 2023 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.