With new plans for further monetary policy intervention, the US Federal Reserve makes additional publicity for Bitcoin.
The Federal Reserve continues to unintentionally advertise Bitcoin, with Federal Reserve Chairman Jerome Powell advocating further „money printing“.
In a tweet on November 6, Tyler Winklevoss, co-founder of the Gemini crypto stock exchange, says that Powell’s recent speech is „a code for buying Bitcoin“.
Powell: Congress to authorise further intervention
Powell made these comments at a press conference on 5 November on the current economic situation and possible monetary policy measures.
He reiterated that the US Federal Reserve had not yet exhausted the full range of its possibilities. However, it should be noted that the US Federal Reserve, in cooperation with the government of the country, has already intervened heavily in the stock markets, injecting funds and distributing aid to the population.
„I think that we will have a stronger economic recovery if we bring in some fiscal support where it fits…Congress also thinks it makes sense,“ Reuters quotes the Federal Reserve Chairman as saying.
Bitcoin advocates repeatedly warn of the long-term consequences of short-term intervention in the economy by the state and the central bank, as evidenced by the ever-increasing national debt in the US and elsewhere.
On Friday, the books of the „Fed“ showed almost 7.14 trillion US dollar, while government debt exceeded 27.2 trillion dollars for the first time in history. US dollar for the first time in history.
No BTC left?
With its monetary policy interventions, the central bank is following the theory that the economy is driven primarily by demand, which is why financial injections are supposed to have a „boosting“ effect. Bitcoin, meanwhile, is quite simply driven by supply and demand, a mechanism that seems to work perfectly well in view of the crypto-currency’s current climb.
The crypto market leader has gained more than 15% since the beginning of the week, reaching spheres last seen at the end of 2017.
According to crypto-analyst PlanB and some of its colleagues, this is not surprising, as according to the so-called stock-to-flow forecast model, which puts the existing circulation of Bitcoin (stock) in relation to the rate of increase (flow), such a price development after the „halving“ in May is the logical consequence. And indeed, investors seem to follow this prediction.
Investors are no longer just private investors, as institutional investors are also increasingly discovering the crypto-currency for themselves. In the third quarter of 2020, the payment service provider Square generated 80% of its revenues through Bitcoin alone.
„There is no more Bitcoin for sale“, as Twitter user Girevik sums up the current situation.