• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Breaking News: Coinbase Caught In SEC Legal Crossfire, COIN Price Suffers
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Caught In SEC Legal Crossfire, COIN Price Suffers

Bitcoin To $30,000? Fed Unveils New Tool To Bailout Non-US Banks

Jake Simmons by Jake Simmons
3 months ago
in Bitcoin
Reading Time: 3 mins read

As the US banking crisis is growing into a global banking crisis, the Bitcoin price is trading above $28,000 again, showing an extremely strong trend that suggests further gains. One of the main reasons to remain bullish in this regard is that the money printer has been turned on once again by the US Federal Reserve (Fed).

As NewsBTC reported, the Fed added a whopping $300 billion to its portfolio last week, offsetting half of all quantitative tightening (QT) in the last 12 months. And the money printer will run even hotter starting today.

Fed Announces New Swap Lines

On Sunday, March 19, the Federal Reserve and six of the world’s largest central banks announced a “coordinated action” to facilitate dollar-denominated banking transactions to calm financial markets.

The Fed, the European Central Bank (ECB), and the central banks of Japan, the United Kingdom, Switzerland, and Canada will expand their swap operations, which central banks use to exchange foreign currency with each other, starting today, Monday, and continuing at least through the end of April. The move is intended to provide central banks outside the United States with a better liquidity of the US dollar.

The central banks reportedly agreed to increase the frequency of seven-day dollar currency swaps from weekly to daily. The swaps have been in place for several years – previously with weekly maturities.

Related Reading: Bitcoin Bullish Signal: NUPL Is Forming A Golden Cross

How it works? The Fed lends dollars to foreign central banks. At the end of the term, the Fed swaps the currencies back at the original exchange rate and collects interest. It’s worth noting that the statement comes just hours after UBS announced its so-called “takeover” (aka bailout) of Credit Suisse.

Here’s Why It’s Bullish For Bitcoin

For BitMEX founder Arthur Hayes, the new swap lines are “another way to bailout non-US banks that isn’t obvious to the average person.” According to him, it is politically dangerous for the Fed to bail out foreign banks when so many small American banks need help.

The WSJ reported a few days ago that 186 banks face the same risks as Silicon Valley Bank. At the same time, the Fed can’t let foreign banks throw their government bonds into a liquid market and screw up even more.

The solution, according to Hayes, are swap lines. The Fed gives USD liquidity to major central banks like the ECB, while the ECB allows EU banks to give it US treasuries at par. This ensures that the ECB can give US dollars to the banks, which can then handle any outflows of USD deposits.

Related Reading: Here’s When Messari CEO Ryan Selkis Expects Bitcoin To Reach $100,000

As a result, the US treasuries market is stabilized because no treasuries are actually sold. Any profit and loss is borne by the central bank, which can absorb infinite losses, which is reflected in the ECB’s balance sheet.

“Long Term: all treasuries held in the entire developed country banking system can now be lent against at par. Money Printer Go Brr,” Hayes concluded. Practically, the Fed becomes the global lender of last resort.

Following the recent news, the Bitcoin price is currently showing an extremely strong upward trend. As the 1-hour chart below shows, the hourly uptrend is still intact. At press time, Bitcoin traded at $28,160.

Bitcoin price
Bitcoin soars past $28.000 | Source: BTCUSD on TradingView.com
Featured image from iStock, chart from TradingView.com
Tags: banking crisisbitcoinbtcfed
Tweet123Share196ShareSend
Jake Simmons

Jake Simmons

Jake Simmons has been a Bitcoin enthusiast since 2016. Ever since he heard about Bitcoin, he has been studying the topic every day and trying to share his knowledge with others. His goal is to contribute to Bitcoin's financial revolution, which will replace the fiat money system. Besides BTC and crypto, Jake studied Business Informatics at a university. After graduation in 2017, he has been working in the blockchain and crypto sector. You can follow Jake on Twitter at @realJakeSimmons.

Related Posts

Bitcoin (BTC)

Bitcoin Slips Below $26,000, Triggers Over $300 Million In Liquidations

14 hours ago
Bitcoin (BTC)

Traders Act Fast As Binance Australia Unveils Bitcoin Discount For Limited Period

1 week ago
Bitcoin (BTC)

No All-Time High For Bitcoin In 2023, Former BitMEX Head Arthur Hayes Predicts

1 week ago
Bitcoin

Bitcoin Shows Recovery: Did This Historical Line Act As Support Again?

1 week ago
Bitcoin Core

Bitcoin Core 25.0 Hits The Market: A Sneak Peek Into The Future

1 week ago
Bitcoin (BTC)

JPMorgan Predicts Bitcoin (BTC) To Revisit $45,000, Here’s Why

2 weeks ago

Premium Partners

Play Finance

Now Trending

  • Potential 20x+ Crypto Presales 2023

    6 days ago
  • Willing to buy new crypto: Here are the best 10...

    7 days ago
  • Best Crypto Meme Coin Presales in 2023

    7 days ago

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

  • Crypto Enthusiast Considers TMS Network (TMSN) A Great...

    2 hours ago
  • Kava vs. AltSignals. Which Token Has a Better Chance To 10x...

    2 hours ago
  • Investors Troop To Sparklo (SPRK) Amid Binance Coin (BNB)...

    2 hours ago
  • Can Mooky.io Outpace Dogelon Mars (ELON) and Big Eye Coin...

    12 hours ago
  • Is Mooky the Next Breakout Star after the Impressive Gains...

    12 hours ago

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.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2023 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Claim 7 BTC

© 2023 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.