of federal reserve system On March 12, it announced “additional funding” to boost the banking sector. Following the announcement, cryptocurrency market capitalization rose to pre-crisis levels, sparking a bullish wave.
Last week, the market crashed on rumors that Silvergate was insolvent. On March 9th, those concerns came true as the cryptocurrency bank said it intended. relax its operation. Other systemic risks presented as Signature Bank and Silicon Valley Bank also collapsed.
As the crisis unfolded, cryptocurrency market capitalization hit a local bottom of $912.84 billion on March 10, an eight-week low. Market his leader bitcoin has lost his $20,000 — finding support at $19,600, further sparking expectations of a loss at his level of support.
However, after the Federal Reserve’s emergency action, the cryptocurrency market valuations soared, peaking at $1.3 trillion, registering a 13% rise from bottom to peak.
Quantitative easing (QE) is back
The Fed’s Bank Term Funding Program (BTFP) provides financial institutions with loans for up to one year on the face value of their holdings. It provides additional liquidity “for high-quality securities” and removes the pressure to force them to sell.
“This measure will strengthen the banking system’s ability to protect deposits and ensure the continued supply of funds and credit to the economy.”
Founder of Custodia Bank Kaitlyn Long — Passed BTFP term sheet — Eligible for non-U.S. banks, par value of assets offered, no fees, no upfront penalties, $25 billion “exchange stabilization” fund, etc. pointed out.
Commentators expressed concern that U.S. taxpayers are hanging on to the program. Others said individuals did not receive the same outspoken treatment of personal debt.
Profitable crypto assets, risk-on assets
Chime In, Bitcoin Maximalist Max Kaiser The Federal Reserve collapsed and was unable to shrink their Ponzi. I estimate it will.
“Now we are in the biggest money printing flood of all time, easily over $50 trillion.“
Former CEO of BitMEX Arthur Hayes Reflecting Kaiser’s sentiments, he tweeted.Are you ready for Mother Hu*king Bull Market?
Nevertheless, despite renewed optimism, length He warned that this action would only kick the can and that inflation was set to continue burning red hot.