How will $ 6 trillion affect cryptocurrencies?
|Marek Feder|source|398x
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How will $ 6 trillion affect cryptocurrencies?

The US central bank, the Federal Reserve, known in particular under the acronym FED, has decided to rescue the entire financial system. At the time of the 2007-2008 Financial Crisis, the $ 700 billion used to bailout US banks and businesses seemed to be an extremely large stimulus and a bundle of money never before seen pumped into the economy. But after only 12 years, the Fed is preparing something unprecedented in the history of the modern financial system.


An extremely aggressive monetary policy, as the Fed called it, is said to be necessary to save the financial system. Not only $ 2 trillion in the form of a rescue package but also a package of up to 4 trillion which the Fed decided to pump into the economy through banks should help the economy in these difficult times.

 

The total monetary base that the Fed was expected to have up to these days was worth about $ 3.3 trillion. In the coming days, the total monetary base will thus almost triple. And where does the Fed take money for it? They simply print them out. During the last world crisis, the Fed doubled its monetary base, so it is clear that the current situation is much worse than it seems.

 

That is why the Fed is a kind of imaginary friend of cryptocurrencies. It is not that this central bank wants to be that, but its actions over the past several years clearly helped the rise of cryptocurrencies. This is not just the Fed, but the vast majority of all central banks around the world have done so. They do not seem to realize that the current financial system is unsustainable. And that is why cryptocurrencies can benefit from this situation as the US is about to add more than $ 6 trillion to circulation. Over time, some of this money will surely move into cryptocurrencies, thus triggering the capitalization of the entire market at the new ATH.

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