Industry Exec Links Bitcoin Price Crash to FED Repo Transactions

Whenever Bitcoin prices fall off the cliff industry observers scramble to find a reason beyond the technical indicators. Something fundamental must have caused the crash and one industry executive has fingered the FED’s recent market meddling.

FED Repo and Bitcoin Related?

Last week the US Federal Reserve pumped more than the entire crypto currency market capitalization back into money markets in order to control lending rates. A surge in short term rates last week threatened to disrupt the bond market and the overall lending system which resulted in these overnight repurchase (repo) agreements.

Those cash injections have continued into this week as a further $100 billion floods into markets. According to an official statement the central bank’s schedule calls for another $75 billion of overnight repos to be sold every business day until October 10. Certain days will also be offering at least $30 billion worth of 14-day repos.

The FED appears to be back where it was roughly a…