RATE Group | Fed-Induced ‘Deflation Crisis’ Will Cause Bitcoin to Soar: Hedge Fund Manager
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Fed-Induced ‘Deflation Crisis’ Will Cause Bitcoin to Soar: Hedge Fund Manager

12 Feb Fed-Induced ‘Deflation Crisis’ Will Cause Bitcoin to Soar: Hedge Fund Manager

Posted at 23:25h in Bitcoin News by

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  • The growing U.S. workforce and retirement of the boomers will force the Fed to double its balance sheet.
  • The expansion of the Fed’s balance sheet will lead to low or even negative yields.
  • These conditions will drive investors to seek assets that are scarce and bitcoin is the number one candidate.

By now, it’s no longer a secret that the Federal Reserve is responsible for pushing the stock market into all-time highs.

The Fed continues to pump billions into the financial system as it grew its balance sheet from $3.7 trillion to nearly $4.2 trillion in a matter of months. During the same period, the S&P 500 and the Dow Jones skyrocketed to all-time highs.

The Federal Reserve expanding its balance sheet. | Source: FRED

One analyst believes the central bank will continue to expand its balance sheet because it has no other choice. A host of factors are forcing the Fed to plug a black hole in the U.S. economy. These conditions could act as rocket fuel for scarce assets like bitcoin.

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