Bitcoin

In order for the Fed to demand more impetus, “key to buying Bitcoin,” says Winklevoss

The US Federal Reserve is still eaccidentally advertises Bitcoin while its president Jerome Powell advocates more money printing.

In a tweet on November 6, Tyler Winklevoss, co-founder of Crypto Exchange Gemini, said Powell’s last speech this week was “the key to buying bitcoin”.

Powell: Congress should approve more incentives

Powell referred to a press conference that followed the November 5th meeting of the Fed on the economic situation and future action.

In order for the Fed to demand more impetus, “key to buying Bitcoin,” says Winklevoss
In order for the Fed to demand more impetus, “key to buying Bitcoin,” says Winklevoss

He continued to reiterate that the central bank had not exhausted its range of instruments to support the economy. Until now, This included extensive interventions in the stock markets, measures to promote financial incentives, and direct payments to Americans.

“I would just say that if we can get more tax support if we can get more tax support, I think that I think we will recover more strongly … the size Congress thinks is appropriate,” he said. aforementioned from Reuters.

Bitcoin proponents have long warned of the long-term effects of short-term central bank interference in the economy.This is illustrated by the huge surge in national debt in the US and elsewhere in 2020.

The Fed’s balance sheet stood at $ 7.14 trillion on Friday, close to its all-time high. America’s national debt has exceeded $ 27.2 trillion, a number never seen before in history.

Fed balance sheet since 2007. Source: Federal Reserve

“There is practically no more BTC for sale”

In what some referred to this week as a clear demonstration of easy supply and demand at work, Bitcoin continued to surge with its fixed supply as Powell delivered his speech.

The largest cryptocurrency has gained more than 15% since the beginning of the week and has risen to levels not seen since the end of 2017.

According to the quantitative analyst PlanB and others This is to be expected given that six months after the block subsidy decline, investors halved the supply of new bitcoins.

This included existing corporate buyers who have increased their requirements, including payment gateway Square, which made 80% of its revenue in the third quarter in Bitcoin.

“There is practically no more BTC for sale”, summarized Girevik’s popular Twitter account, which notes strong buyer support for Echanges at levels below $ 13,000. Sellers have yet to come to market, even just under $ 16,000.

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