RATE Group | Bitcoin (BTC) Bulls Say It’s Time for ‘Plan B’ as Fed Ramps Up Repo Operations
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Bitcoin (BTC) Bulls Say It’s Time for ‘Plan B’ as Fed Ramps Up Repo Operations

21 Mar Bitcoin (BTC) Bulls Say It’s Time for ‘Plan B’ as Fed Ramps Up Repo Operations

Posted at 04:20h in Bitcoin News by

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Contents

  • Fed’s bazooka
  • It’s time for PlanB

The U.S. Federal Reserve has made an announcement about injecting more than $1 trln into the repo markets every day at least until the end of March. The move, which is meant to help banks weather the ongoing crisis, didn’t go well with the crypto community that was quick to unleash its ‘money printer’ memes. 

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Fed’s bazooka

Banks are supposed to provide collateral in the likes of U.S. Treasurys to receive cash from the Fed. This liquidity is needed for short-term operations. 

The U.S. central bank made started repo operations of $500 bln on March 16 before bumping up its aggregate offered amount to the above-mentioned $1 trln figure.  

As reported by U.Today, the Fed also cut interest rates to…

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