Summary
- "It was reported that the possibility of a large surge in Bitcoin (BTC) was raised due to the Federal Reserve's (Fed) reduction in cash holdings."
- "It stated that the U.S. Treasury's increased issuance of bonds and the Fed's continued quantitative tightening are accelerating the liquidity depletion of the banking system."
- "It analyzed that past cash shortage situations have been associated with repeated instances of sharp rises in Bitcoin."
Bitcoin (BTC) is expected to be able to achieve a large rise. A major factor is the reduction in cash holdings at the U.S. central bank, the Federal Reserve (Fed).
On the 27th (Korea time), according to cryptocurrency specialist CoinDesk, Koveysi Letter author Adam Livingston said in a report, "The Fed's bank reserves have decreased to about $2.93 trillion, reducing dollar liquidity," and analyzed, "The market could react sensitively to short-term funding. A situation favorable to Bitcoin is being created."
Livingston said, "The U.S. Treasury increased bond issuance to raise the debt ceiling in July, reducing liquidity in the banking system," and explained, "Also, the Fed's ongoing quantitative tightening and the fact that other Fed liabilities (such as increases in currency in circulation) are occupying cash space are together accelerating liquidity depletion."
He added, "If cash shortages and market sensitivity increase, the Fed will stop shrinking its assets and print money," and said, "Previous events such as repo market strain in 2019, emergency policy easing in 2020, and the regional bank crisis in 2023 have also been linked to Bitcoin's sharp rallies."
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
