NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: SOL Strategies: The First Solana Treasury Company Listed On Nasdaq
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: SOL Strategies: The First Solana Treasury Company Listed On Nasdaq

Bitcoin to Boom after Markets Run Out of Fed Support

Yashu Gola
Yashu Gola
1 year ago
2 mins read
bitcoin, cryptocurrency

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The US central bank’s effort to expand its balance sheet through a pseudo-quantitative easing program could prompt bitcoin to pursue its next bull run.

Since October, the Federal Reserve has been buying $60 billion worth of T-bills every month. Moreover, the organization is purchasing another $20 billion in MBS and TSY maturity investments, alongside tens of billions in overnight repos. That has led the Fed’s balance sheet to explode by over $400 billion in about four months.

But that is still not quantitative easing (QE), according to an assertive Fed chairman, Jerome Powell.

How Bitcoin and Stocks Perform During Fed’s Expansion

Bitcoin registered gains in the month the Fed launched its disguised QE program, with the cryptocurrency trading up by 10.29 percent in October.

The upwards movement came in tandem with a boom in stock market, as reported by ZeroHedge. For instance, the US benchmark S&P 500 rocketed in the weeks Fed’s balance sheet was expanding. The index plunged only once in the third week of November – concurrently with a decline in the Fed’s balance sheet.

bitcoin, spx, fed balance sheet
The positive correlation between Fed balance sheet and S&P 500 | Source: ZeroHedge

In the same week, bitcoin registered its worst weekly performance, dropping by more than 18 percent.

bitcoin, spx 500, cryptocurrency
Bitcoin’s huge weekly drop coincided with Fed’s balance sheet dip | Source: TradingView.com

The cryptocurrency has been trending sideways in a strict trading range ever since, while the S&P 500 recorded its best performance since 2013. So it appears, the fresh injection of billions of dollars into the banking system did not enter the economy but rather entered the stock market. The result was both the S&P 500 and Fed balance sheet rising 1 percent in tandem.

Bitcoin – a widely-unregulated offbeat asset – did not even appear as an alternative investment during the capital shift.

The End of QE and Upcoming BTC Halving

The Fed is likely to pump its balance sheet by injecting $60-100 billion every month through repos and bill purchases. The move would further help inflate the US stock market – a reason why a majority of economists and investors see the three major indexes hitting their all-time highs in Q1/2020.

As usual, the gains will start evaporating the moment Fed ends its pseudo-QE. Morgan Stanley’s investment expert Andrew Sheets expects the central bank to end the QE in either April or May. That would further coincide with an unresolved trade war between the US and China.

“After that, markets may once again have to confront a world with limited trade progress and no further Fed support,” wrote Mr. Sheets.

Interestingly, bitcoin’s overly hyped halving is going to occur at the same time.

Subsequently after this event, a pre-programmed code would slash the cryptocurrency’s supply rate by half. As investors’ appetite for risk-off assets goes up during the stock market reversal, bitcoin is likely to offer an interim hedge. It has done the same during the Q2/2019 at the heights of the US-China trade war.

Nevertheless, if the Fed – under the pressure of President Donald Trump – decides to continue its QE, then the stock market would remain attractive for investors.

Only a macroeconomic bear would prefer bitcoin as a hedge against a potential US market bubble burst.

Tweet123Share196ShareSend
Yashu Gola
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN.

Read more

Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Close

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

dogecoin

Первый Dogecoin ETF близок к запуску: что это значит для рынка

Рынок мемкоинов получает новый импульс – REX-Osprey готовит первый в США ETF на Dogecoin. Эта новость вызвала оживленное обсуждение в...

daria 59 minutes ago
Биткион и таймер

Биткоин теряет позиции: аналитики предупреждают о риске коррекции

В конце августа Биткоин не удержал уровень в $110 000, показав падение на 12% от исторического максимума. Для рынка это...

daria 59 minutes ago

Previsioni Ethereum: ETH in Calo Intrappolato nella Sfida tra Orsi e Tori

In mezzo al tira e molla che sta scuotendo il mercato crypto, il prezzo di Ethereum si trova ora in...

clararosati 1 hour ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Bitcoin CDD Indicator Signals LTH Distribution As Demand Offsets Pressure

Bitcoin CDD Indicator Signals LTH Distribution As Demand Offsets Pressure

Sebastian Villafuerte 16 minutes ago
Little Pepe ($LILPEPE) Presale Nears Sell-Out as Meme Coin Market Eyes 100x

Little Pepe ($LILPEPE) Presale Hits $25M as Meme Coin Fans Eye 100x

Aaron Walker 24 minutes ago
XRP whale koopgolf van $340M - instituties stappen massaal in

XRP whale koopgolf van $340M – instituties stappen massaal in

Lars Diederiksen 56 minutes ago

Premium Sponsors

Press Releases

  • První mine-to-earn meme coin PepeNode získal 900 000 $ v předprodeji – zbývá jen 7 hodin ve fázi financování

    První mine-to-earn meme coin PepeNode získal 900 000 $ v...

    39 minutes ago
  • ドージコイン 今後の可能性:TradFiが注目する0.50ドルの壁とは

    ドージコイン...

    42 minutes ago
  • Meme coinok visszatérnek a játékba: a Snorter Bot Token (SNORT) előértékesítése meghaladja a 3,8 millió dollárt

    Meme coinok visszatérnek a játékba: a Snorter Bot Token...

    48 minutes ago
  • První mine-to-earn meme coin PepeNode získal 900 000 $ v předprodeji – zbývá jen 7 hodin ve fázi financování

    Prvi Mine-to-Earn meme coin PepeNode prikupio 900.000 $ u...

    57 minutes ago
  • リップル 今後:ETF承認期待でXRPが3ドルに接近

    リップル...

    1 hour ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. 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.