If Fed Print More Money What Is It About Bitcoin?
When a Federal Reserve Neel Kaquai official appeared on the CNBC and said Fed has “tools to provide more liquidity on the market”, Cripto X has instantly missed this statement as a vow to print dollars. If this happens, what are the implications of Bitcoin?
It is not clear that the Fed will use its tools to add liquidity to the market. The Agency officials continue to strengthen the idea that they do not rush to take any action related to the current tariff chaos.
Fed wants to see the results of negotiations between the United States and other countries, Kashkari He says.
However, the Fed is satisfied with the improvement of the CPI inflation rate (in March, he reached 2.4%) and will not give priority to any other task before fulfilling his mission to bring inflation at 2% rate.
For the first time in five years the prices saw a monthly fall from 0.1%.
The Fed will probably refuse from reducing interest rates to push inflation, while Trump hopes that Fed will reduce the rates to help markets.
Many experts agree that Trump wants to weaken the dollar to strengthen exports and compensate for the trade deficit. Kaqaqara does not see the trade deficit as something extraordinary for the USA
Disagreement in the interest rate led to a slow conflict between Trump and Fed Chairs, Jerome Powell. How it is reported, Trump strives to stop Powell through the Supreme Court before the appearance ends.
The American president cannot rinse federal reserves for no reason.
Will Fed add liquidity to markets?
The short answer is “not yet”.
Kaquaades said Fed has liquidity tools, but noted that the agency would not intervene until it is clear that the market cannot be corrected. And the 90-day break in tariffs does not add a clarity to the situation.
Since the fear index is high and probably that the recession, Fed could be more proactive and reduce the rates to encourage people to enter the economy and inject the economy and inject the economy and inject the economy.
The growing bond gives signaling the weakening economy and Kaqaqara admitted that Fed pays great attention to this market.
However, policy makers teaching to wait. To prevent premature increase in liquidity that could increase inflation and preserve the markets of total collapse, they had to act precisely, which is not easy in the tariff policy that many people have little more meaningful for many people.
Kaqaqara notes that the fall of American dollars during the turbulent times is unusual. He sees him as a displacement of investors’ preferences.
Fed is in a situation without conquering. The inflation rate is still above the preferred level 2%, and the retention of interest rates of high leads to greater mortgage interest and problem refinancing national debt.
How does inflation affect the crypto market?
If Fed decides to draft liquidity in markets, it is not clear which method of the Agency will use. The CRIPTO KS community reacted to KaĊĦakari’s interview quite unequivocally, suggesting that the Fed will go to print money.
Kaquais mentioned a different tool for adding liquidity.
He said that standing reply or domestic funds for purchases, whether the return measure is in check and provides liquidity in the form of funding against American state debt and securities from securities.
But the short-term inflation inflation is probably, and the FedA task does not allow it to be spirally released into long-term inflation.
In recent years, the spikes of inflation were encouraged by the growth of cryptocurri because people begin to look for alternative ways to save and invest money. Thus, the general time of economic turbulence is seen as an opportunity for the crypto market.
The living example is Climb market cryto Following a grandiose sales, initiated the announcement that COVER-19 gets pandemic status.
Bitcoin supply continues increases. Therefore, we can talk about its own inflation of Bitcoin, but the new BTC units hit the market and a surveillance speed and will eventually stop at 21 million brands. This makes Bitcoin vary from money from fiats printed by central banks.
As a top crypt with a fixed offer, Bitcoin can be viewed as a hedge against inflation. Its inclusiveness, global accessibility and independence from the government trust in Bitcoin, while traditional institutions and governments lose people’s trust during sprint inflation.
While BitCoin is deflation, the supply and demand mechanism is volatile in the short term. Many point to the Bitcoin long-term ability to accumulate values, which makes it property value.
While there can be a correlation of baccalware, this can be called defining, so Bitcoin can still be an alternative to traditional investments.
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2025-04-12 18:21:00
