Technically, that's not what this is. The Fed is reinvesting money from maturing securities, while keeping new reserve management purchases at zero. So this isn't the money printer suddenly going brrrr.
But here's where I think the story gets interesting.
Bitcoin is rallying above $80K even after the Fed just raised rates and kept a relatively hawkish stance.
That tells me this move may be less about the Fed suddenly becoming bullish on risk assets and more about the market realizing liquidity conditions aren't tightening as aggressively as feared.
If the Fed eventually resumes actual reserve management purchases, then the liquidity argument gets much stronger.
For now, I'm not calling this QE.
But I'm also not ignoring what BTC is doing with $80K back in play.
Sometimes the market starts front running the liquidity story before the liquidity actually arrives.
$BTC #Bitcoin Price Prediction: What is Bitcoins next move?#
But here's where I think the story gets interesting.
Bitcoin is rallying above $80K even after the Fed just raised rates and kept a relatively hawkish stance.
That tells me this move may be less about the Fed suddenly becoming bullish on risk assets and more about the market realizing liquidity conditions aren't tightening as aggressively as feared.
If the Fed eventually resumes actual reserve management purchases, then the liquidity argument gets much stronger.
For now, I'm not calling this QE.
But I'm also not ignoring what BTC is doing with $80K back in play.
Sometimes the market starts front running the liquidity story before the liquidity actually arrives.
$BTC #Bitcoin Price Prediction: What is Bitcoins next move?#
