Bitcoin (BTC) has traded between $ 7,182 and $ 7,261 in the past five hours, showing a snapshot of relatively stable price action Thursday after the latest announcement from the US Federal Reserve, which is expected to inject 2.3 additional trillion dollars in the US economy.
This decision comes as the Fed seeks to stabilize the financial markets as well as to save small and medium-sized businesses, states and municipal governments pushed to the brink of the ongoing economic abyss triggered by layoffs, blockages and home support. orders due to the coronavirus pandemic.
According to COIN360, the top three cryptocurrencies have all lost less than 1% at the time of writing. Bitcoin is down 0.52% to $ 7,270, Ethereum is down 0.66% to $ 169.68 and XRP is down 0.35% to $ 0.19.
According to Federal Reserve Board Chairman Jerome Powell, who spoke at an online event hosted by the Brookings Institute, the Fed will take a number of unprecedented actions, such as the creation of a “Municipal Liquidity Facility ”which will offer up to $ 500 billion in loans to states and municipalities.
“Many of the programs we undertake to support the flow of credit are based on emergency lending powers … We will continue to use these powers with strength, proactivity and aggressiveness until we are confident that we are firmly on the ground. road to recovery. “
Latest Fed Efforts Add Lower Rates to Near Zero, Purchase Mortgage-Backed Securities and Billions of Public Debt Totaling Billions of Dollars, and Strengthen Loan Program $ 350 billion emergency for small businesses to avoid further layoffs and closed doors. Main Street.
Crypto influencers are sounding the alarm.
Bitcoin educator and developer Jimmy Song said the Fed’s impression of money will hit other countries the hardest.
“All of this printed money will hurt people in third world countries the most. The demand for USD in these countries will increase, their currencies will swell and our bureaucrats will wave their finger at them for their bad monetary policy which was imposed on them. “
Crypto analyst Plan B, which popularized the application of the stock-to-flow model to predict the price of Bitcoin, calls the Fed’s latest action the last warning.
“Don’t think the central bank doesn’t know what it is doing. CB knows exactly what they are doing and how it ends. But they have no choice. Consider it your last warning signal , the canary in the coal mine. Protect yourself, buy CB stuff and governments CANNOT print. #Bitcoin. ”
Meanwhile, economist Joseph Stiglitz suggest business owners who don’t like government proposals can roll the dice by declaring bankruptcy instead. He calls for “super-chapter 11” procedures designed to keep businesses in business to avoid systemic collapse.
Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors must exercise due diligence before investing in high risk Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and that any loss you may suffer is your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, and The Daily Hodl is not an investment adviser. Please note that The Daily Hodl participates in affiliate marketing.