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: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • 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: Coinbase Confirms DOJ Investigation Following Major Security Incident

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

비트코인 보유고에 대한 불안감? 사상 첫 솔라나 레이어 2 코인의 상승 가능성 분석

부채 기반 비트코인 전략에 대한 불안감 속 솔라나의 대안은?

기업 재무 전략이 전통 금융과 가상화폐의 융합으로 새로운 시대에 접어들고 있다. 특히 두 가지 방식이 디지털 자산 운용 방식을 근본적으로 바꾸고 있다. 💡 첫 번째 접근법: 검증된...

Soyeon Lee 3 hours ago
Ethereum Prepares For A Decisive Move: ETH/BTC Setup Could Trigger Altseason

Ethereum Prepares For A Decisive Move: ETH/BTC Setup Could Trigger Altseason

Ethereum is approaching a critical test as price action tightens, setting the stage for a decisive move above key demand....

Sebastian Villafuerte 4 hours ago

Nová kryptomena vzbudzuje pozornosť ako možný nástupca Bitcoinu: „Pozitívny signál“

Ťažba Bitcoinu je už dlhodobo terčom kritiky kvôli obrovskému dopadu na životné prostredie. Nová kryptomena s názvom Bitcoin.ℏ však sľubuje...

Kováč Martin 5 hours 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

Solana Analyst Sees $123 And $116 As Mid-Zone Support Levels – Here’s Why

Solana Analyst Sees $123 And $116 As Mid-Zone Support Levels – Here’s Why

Sebastian Villafuerte 9 minutes ago

Bitcoin Price Deviates From Global M2 Money Supply, Is The Bull Run Over?

Scott Matherson 1 hour ago
Noua criptomonedă atrage atenția ca posibilă înlocuitoare a Bitcoinului

Noua criptomonedă atrage atenția ca posibilă înlocuitoare a Bitcoinului: „Un semn pozitiv”

Munteanu Cristian 2 hours ago

Premium Sponsors

Top Brands

Press Releases

  • Нова криптовалута предизвиква вълнение като потенциален заместител на Биткойн: „Положителен знак“

    Нова криптовалута предизвиква...

    2 hours ago
  • Nová kryptoměna přitahuje pozornost jako možná náhrada za Bitcoin: ‘Pozitivní signál’

    Nová kryptoměna přitahuje pozornost jako možná...

    3 hours ago
  • Dự Đoán Giá Notcoin NOT Giảm 3% Khi Nhà Đầu Tư Chuyển Hướng Sang Token Giao Dịch Trên Telegram Với Lợi Nhuận 277% APY

    Dự Đoán Giá Notcoin: NOT Giảm 3% Khi Nhà Đầu Tư...

    3 hours ago
  • ビットコイン15万ドル目前|1000倍が狙える仮想通貨プレセール注目リスト

    ...

    4 hours ago
  • 地政学リスクに備えるベテラン投資家たち|今注目の仮想通貨おすすめとは?

    ...

    5 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

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.