{"id":18849,"date":"2023-03-17T21:29:45","date_gmt":"2023-03-17T21:29:45","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/next-round-of-bailouts-is-here-bitcoin-and-precious-metals-soar-amid-speculation-of-fed-policy-change-bitcoin-news\/"},"modified":"2023-03-17T21:29:45","modified_gmt":"2023-03-17T21:29:45","slug":"next-round-of-bailouts-is-here-bitcoin-and-precious-metals-soar-amid-speculation-of-fed-policy-change-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/next-round-of-bailouts-is-here-bitcoin-and-precious-metals-soar-amid-speculation-of-fed-policy-change-bitcoin-news\/","title":{"rendered":"\u2018Next Round of Bailouts Is Here\u2019 \u2014 Bitcoin and Precious Metals Soar Amid Speculation of Fed Policy Change \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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At around 7:30 a.m. ET, the price of bitcoin skyrocketed past the $27,000 range to a high of $27,025 per unit. Precious metals, or PMs, like gold and silver, also rose between 1.98% and 2.12% against the U.S. dollar over the past day. While many market observers are wondering why specific assets like PMs and cryptocurrencies have rebounded, a number of speculators suspect it\u2019s because the U.S. central bank will now relax its monetary tightening policy.<\/strong><\/p>\n

4 Major Banks Bailed Out Following Silvergate Bank\u2019s Collapse; Federal Reserve\u2019s Easing Sparks Rebound in Cryptocurrencies and PMs<\/h2>\n

Last week, market investors witnessed four significant bailouts to save depositors stemming from Silicon Valley Bank (SVB), Signature Bank (SBNY), Credit Suisse<\/a>, and First Republic Bank. All four financial institutions were bailed out<\/a> with billions of dollars after a financial contagion spread across the U.S. banking system<\/a> following the fall of Silvergate Bank. The bailouts<\/a>, combined with speculation<\/a> that the Federal Reserve will stop raising the federal funds rate and may even cut it, have fueled the values of precious metals and the cryptocurrency economy. The price of bitcoin (BTC)<\/a> rose to $27,025 on Friday morning and the asset is currently changing hands for $26,517 per coin.<\/p>\n

BTC<\/a> is up 6.9%, and the second-leading cryptocurrency asset, ethereum (ETH)<\/a>, has risen 5% higher over the last day. A troy ounce of .999 fine gold is $1,959 per unit<\/a> on Friday, up 1.98%, and an ounce of fine silver has increased by 2.12%, hitting $22.13 per unit. Market investors believe that the Fed is \u2018back to printing money\u2019 again, according to Phoenix Capital Research analyst Graham Summers. The analyst noted<\/a> that the U.S. central bank has erased half of its quantitative tightening (QT) so far. Summers mentioned that what the Fed did in just five days was equivalent to more than two months of quantitative easing (QE) during the Covid-19 pandemic. Summers stated:<\/p>\n

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Now, technically much of this ($164 billion to be exact) came in the form of loans to banks. The banks will have to pay this back, so it\u2019s not quite the same as Quantitative Easing (QE). Regardless, the key point is that the Fed is no longer shrinking its balance sheet \u2026 instead it is printing money. And not a little bit, but $300+ billion in a single week.<\/p>\n<\/blockquote>\n

Intotheblock.com<\/a>\u2018s (ITB) Onchain Insights newsletter this week notes that monetary easing policy may be contributing to the recent spike in risk assets. \u201cMarkets are seeing increased odds of interest rate hikes slowing down while liquidity increases,\u201d ITB\u2019s newsletter details. Market estimates suggest that the U.S. central bank will become dovish toward interest rate hikes, and some suspect the benchmark rate hike will be skipped this month. The Fed\u2019s recent actions, taking just five days, have added to speculation that the money printer has been turned back on. ITB\u2019s newsletter also references an article<\/a> that says JPMorgan has stated the Fed could inject $2 trillion in liquidity after the creation of the Bank Term Funding Program (BTFP).<\/p>\n

ITB researchers highlight what happened in 2020 and 2021 when \u201cmarkets rallied as capital abounded.\u201d The newsletter opines that a significant portion of 2022\u2019s losses stemmed from QT and the Fed\u2019s monthly rate hikes. \u201cWhile it remains to be seen whether the liquidity injection from the BTFP will be as large as the $2T estimated, markets are likely rallying in anticipation of the \u2018money printer\u2019 being back on the table,\u201d the ITB newsletter adds. Phoenix Capital Research analyst Summers also insists that the \u201cnext round of bailouts\/easing\/reflating the financial system is here\u201d and further emphasized in his report that \u201cthis won\u2019t end well.\u201d<\/p>\n

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\nTags in this story
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Bailouts<\/a>, Bank Term Funding Program<\/a>, Benchmark Rate<\/a>, Bitcoin<\/a>, Central Bank<\/a>, Covid-19 pandemic.<\/a>, credit suisse<\/a>, Cryptocurrency<\/a>, Dovish<\/a>, Ethereum<\/a>, Federal Reserve<\/a>, financial contagion<\/a>, First Republic Bank<\/a>, gold<\/a>, interest rate hikes<\/a>, liquidity injection<\/a>, market observers<\/a>, Monetary Policy<\/a>, Monetary Tightening<\/a>, money printer<\/a>, Phoenix Capital Research<\/a>, Precious Metals<\/a>, quantitative easing<\/a>, Quantitative tightening<\/a>, Signature Bank<\/a>, Silicon Valley Bank<\/a>, silver<\/a>, Silvergate Bank<\/a>, us banking system<\/a>, US Dollar<\/a><\/div>\n<\/div>\n

What do you think the Fed\u2019s monetary policy changes will mean for the future of precious metals and cryptocurrencies? Share your thoughts in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, yampi \/ Shutterstock.com<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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