No Result
View All Result
Monday, June 27, 2022
  • Login
FXVNPRo
ADVERTISEMENT
  • Home
    • Advertising Promotion
    • Best Brokers 2022
    • Economic Calendar
    • Contact Us
  • Forex Brokers Review
  • Learn To Trade
    • Promotional Content
    • Forex News
  • Forex Promotions
    • Best Promotions
    • Forex No Deposit Bonus
    • Forex Demo Contest
    • Forex Cashback Rebate
    • Forex Deposit Bonus
    • Forex Live Contest
    • Affiliate Program
    • Other Promotions
  • Expert Advisors
    • Expert Advisors Price
No Result
View All Result
  • Home
    • Advertising Promotion
    • Best Brokers 2022
    • Economic Calendar
    • Contact Us
  • Forex Brokers Review
  • Learn To Trade
    • Promotional Content
    • Forex News
  • Forex Promotions
    • Best Promotions
    • Forex No Deposit Bonus
    • Forex Demo Contest
    • Forex Cashback Rebate
    • Forex Deposit Bonus
    • Forex Live Contest
    • Affiliate Program
    • Other Promotions
  • Expert Advisors
    • Expert Advisors Price
No Result
View All Result
FXVNPRo
No Result
View All Result
Home Forex News

Fed money printer goes into reverse: What does it mean for crypto?

fxvnpro by fxvnpro
June 1, 2022
in Forex News
1
ForexNews
0
SHARES
3
VIEWS

The United States Federal Reserve is starting the process of paring back its $9 trillion balance sheet that ballooned in recent years in a move called quantitative tightening (QT). 

Analysts from a crypto exchange and financial investment firm have conflicting opinions about whether QT, starting on Wednesday, will put an end to a decade of unprecedented growth across crypto markets.

Laypeople can consider QT the opposite of quantitative easing (QE), or money printing, which the Fed has been engaged in since the start of the COVID-19 pandemic in 2020. Under QE conditions, more money is created and distributed while the Fed adds bonds and other treasury instruments to its balance sheet.

The Fed plans on shrinking its balance sheet by $47.5 billion per month for the next three months. In September of this year, it plans on a $95 billion reduction. It aims to see its balance sheet reduced by $7.6 trillion by the end of 2023.

Pav Hundal, manager at the Australian crypto exchange Swyftx, believes that QT could have a negative impact on markets. He told Cointelegraph on Wednesday that “it’s very possible thatyou might just see growth in market cap trimmed slightly:”

“The Fed is culling assets harder and faster than a lot of analysts had expected and it’s difficult to imagine that this won’t have some kind of impact on investor sentiment across markets.”

Initiated in March 2020, the impact of QE on the crypto market was dramatic. CoinGecko data shows that the crypto market cap languished through 2019 and early 2020, but a vibrant bull market began in late March 2020 as the money printer fired up. The total crypto market cap burst from $162 billion on March 23, 2020, to a peak of just over $3 trillion last November.

Over a similar time frame, the Fed balance sheet increased 2.1 fold from $4.17 trillion on January 1, 2020, to $8.95 trillion on June 1, 2022. That is the fastest rate of increase since the last global financial crisis starting in 2007.

Financial advisory firm deVere Group CEO Nigel Green believes market reactions to QT will be minimal because “it’s already priced in.” Green said there may be a “knee-jerk reaction from the markets” because of the unexpected speed with which QT is being rolled out, but he sees it as a little more than a wobble:

“Furthermore, we expect a market bounce imminently, meaning investors should be positioning portfolios to capitalise on this.”

Wage increases among American workers, especially in the hospitality industry, have already been observed as labor demand remains high. Assuming wages remain high through QT, the U.S. may emerge from the economic downturn with lower income inequality. Crypto market analyst Economiser explained in a Tuesday tweet that if people wind up with more cash in their pockets from their higher wages, “the crypto market could ultimately benefit” from QT.

Hundal added that while markets are experiencing increased volatility lately, Bitcoin (BTC) could benefit as it is now demonstrating its position as a bellwether asset. He noted that Bitcoin dominance is currently at about 47%, up by eight percentage points from the start of 2022. He said, “There are different ways to interpret this,” adding:

“It does suggest that market participants are seeking to park value in Bitcoin, meaning we could see weakness continue to trend across alt coin markets if current market conditions continue to play out.”

Source: FXStreet – Cointelegraph Team

Read Persistent inflation worries and growth concerns continue

Post Views: 83

Related posts:

OctaFXUSD/JPY spikes to multi-decade high after BOJ decision HYCMWill Dr Copper fall lower in May on slowing global growth? ForexNewsBreaking: Luna Foundation Guard (LFG) sold 46,876 BTC amid Terra’s death spiral ForexNewsIt’s Friday and stocks are in rally mode ForexNewsEURUSD Forecast: Bulls need to defend 1.0660 to keep sellers at bay ForexNewsWTI oil outlook: Price rose to a nine-week high in early Monday ForexNewsFX daily: More grist to the stagflation mill ForexNewsForex technical analysis and forecast: Majors, equities and commodities
Tags: crypto exchange and financial investment firmFed money printer goes into reverseForex NewsThe United States Federal Reserve
exness
Previous Post

Bitcoin bulls saddle up for a move to $35,000 as Panama opens its doors to BTC

Next Post

Persistent inflation worries and growth concerns continue

fxvnpro

fxvnpro

Next Post
ForexNews

Persistent inflation worries and growth concerns continue

Comments 1

  1. Pingback: Bitcoin bulls saddle up for a move to $35,000

Leave a Reply Cancel reply

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

Stay Connected

XM
  • Trending
  • Comments
  • Latest
PrimeXBT

Step2earn Contest (06.06.22) | PrimeXBT

May 31, 2022
Tiomarkets

TIOmarkets: Client Sentiment Analysis And Trading

April 16, 2022
XTrade

Xmas Season Bonus (26.12.21) | XTrade

April 27, 2022
NordFX

Super Lottery 2022 | NordFX

May 12, 2022
FPMarkets

What is Forex Trading? (Part 1)

25
ForexNews

Key Trading Levels: AUD/USD, EUR/USD, GBP/USD, NZD/JPY, other currencies, USD Index, and SP500

14
CMC Markets

What Is Bitcoin?

12
Tiomarkets

Learn how to start trading Cryptos

12
iFOREX

Profit from Having Friends | iFOREX

June 27, 2022
FXStreet

Back to black: The countries best positioned to replace Russian gas with coal

June 27, 2022
MarketNews

Risk appetite regains some composure; focus on numerous meetings this week

June 27, 2022
MarketNews

What’s driving gold pricing right now? [Video]

June 27, 2022

Recent News

iFOREX

Profit from Having Friends | iFOREX

June 27, 2022
FXStreet

Back to black: The countries best positioned to replace Russian gas with coal

June 27, 2022
MarketNews

Risk appetite regains some composure; focus on numerous meetings this week

June 27, 2022
MarketNews

What’s driving gold pricing right now? [Video]

June 27, 2022

Advertisement

fbs



300_250_en stocks

Connect to FXVNPRo

facebook twitter telegram

Now online

FXVNPRo

FXVNPRo Information

Address: Ho Chi Minh City, Vietnam, 70000

Contact us:
– Skype: fxvnpro
– Email:

admin@fxvnpro.com

fxvnpro@gmail.com

Payment methods:
– Webmoney
– Perfect Money
– Paypal
– Skrill
– Neteller
– Bank Wire
– Bitcoin

Disclaimer

Any promotions, reviews, and other information in the website are just for the information purpose only.

There is no invitation or encouragement to invest in the Financial Market such as CFDs, Forex, Binary Options, Indices, Cryptocurrencies and so on. We disclaim liability for any loss resulting from the use of information contained on this website.

The published comments are private opinions or feedback of the users. FXVNPRo is not responsible for any information on the website.

Risk warning

Please be aware of your investment into trading markets which is high risk and not suitable for everyone.

Recent Posts

  • Profit from Having Friends | iFOREX
  • Back to black: The countries best positioned to replace Russian gas with coal
  • Risk appetite regains some composure; focus on numerous meetings this week
  • What’s driving gold pricing right now? [Video]
  • Indices rallying but be careful – G7 to cap the price of crude? JPY still weak [Video]
  • GBPUSD Forecast: Pound faces next hurdle at 1.2360
  • What are Altcoins?
  • Trading veteran Peter Brandt says Bitcoin price can turn bullish under one condition
  • Rotation from Bitcoin to altcoins?
  • EURUSD Forecast: Euro could push higher as long as 1.0560 support holds
  • Free VPS | FXPIG
  • Review FXPIG
  • $2022 Tradable Bonus | HonorFX
  • 100% Credit Bonus | HonorFX
  • Review HonorFX

© 2013 - 2022 FXVNPRo - Forex Expert Advisors | Forex Promotions | Forex News.

No Result
View All Result
  • Home
    • Advertising Promotion
    • Brokers Listing
    • Economic Calendar
    • Contact Us
  • Forex Brokers Review
  • Learn To Trade
    • Promotional Content
    • Forex News
  • Expert Advisors
    • Expert Advisors Price
  • Forex Promotions
    • Best Promotions
    • Forex Demo Contest
    • Forex No Deposit Bonus
    • Forex Cashback Rebate
    • Affiliate Program
    • Forex Deposit Bonus
    • Forex Live Contest
    • Other Promotions

© 2013 - 2022 FXVNPRo - Forex Expert Advisors | Forex Promotions | Forex News.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In