In the past week alone, the Fed’s balance sheet has hit a record high, which currently totals more than $8.3 trillion. Has its rapidly growing assets accelerated the adoption of cryptocurrencies?
The Fed releases balance sheet data updates every seven days, and this week’s report disclosed that it had purchased another $8 billion in assets during this period.
Fed balance sheet hits record high
The Fed’s balance sheet performance is reaching an incredible 8.357 trillion U.S. dollars. Are we seeing a U.S. dollar bubble that is forming? “There is no end in sight,” said cryptocurrency supporter Anthony Pompliano.
The influx of new funds into the financial infrastructure of US institutions has kept interest rates in the US dollar economy close to zero.
In the words of the Federal Reserve, the purpose of this is to help it achieve the dual mission entrusted by Congress, to stabilize prices and maximize employment.
But in fact, the goal is to increase prices steadily and easily, so that dollar users will be motivated to spend their dollars earlier, rather than waiting to spend with them.
Monetarists want to see commodities and currencies exchange more frequently and use quantitative easing to lubricate the wheels of the market.
Are central banks accelerating the adoption of cryptocurrencies?
Nasdaq stated, “As the economy shrinks and government stimulus measures increase the global money supply, concerns about inflation are obvious. Bitcoin positions itself as a perfect hedge against inflation. Unlike fiat currencies, Bitcoin Not regulated by the central bank.”
The financial news website Benzinga advised readers on Saturday how to use cryptocurrencies as part of an anti-inflation portfolio and warned:
“With the US consumer price index rising by more than 5.4%, inflation is already very real. Investors who do not consider asset portfolio allocation may find that their long-term purchasing power will decrease in the future.”
Although the Fed essentially skids other people’s money and lends it at zero interest rates, investors on DeFi (decentralized finance) cryptocurrency lending platforms are lending their own money in exchange for huge, sometimes Is the double-digit annual percentage rate of return. At the same time, others deposit their savings in deflationary digital assets such as Bitcoin. With each round of money printing, the central bank is injecting liquidity into decentralized banks.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/will-the-feds-balance-of-assets-and-liabilities-of-8-357-trillion-us-dollars-accelerate-the-adoption-of-cryptocurrencies/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.