With new plans for further monetary policy interventions, the US central bank is making additional advertising for Bitcoin.
The American central bank continues to unintentionally advertise Corona Millionaire, with central bank chief Jerome Powell speaking out in favor of further “money printing”.
In a tweet on November 6th, Tyler Winklevoss, co-founder of the Gemini crypto exchange, said that Powell’s latest speech was “a code to buy Bitcoin”.
Powell: Congress should approve further interference
Powell had made the corresponding statements again on November 5 at a press conference on the current economic situation and possible monetary policy measures.
He reaffirmed that the American “Federal Reserve” had not yet fully exhausted the range of its possibilities. It should be noted, however, that the US Federal Reserve, in conjunction with the country’s government, has already intervened heavily in the stock markets, injecting funds and distributing aid to the population.
“I think we will have a stronger economic recovery if we bring in a little fiscal support where it fits … Congress also thinks that makes sense,” Reuters quoted the central bank chief as saying.
Bitcoin advocates repeatedly warn of the long-term consequences of short-term interventions in the economy by the state and central bank, which can be seen in the ever-increasing national debt in the USA and other countries.
The books of the “Fed” showed just under 7.14 trillion on Friday. US dollars, while the national debt topped 27.2 trillion for the first time in history. US dollar has climbed.
No more BTC left?
With its monetary policy interventions, the central bank follows the theory that the economy is primarily controlled by demand, which is why financial injections are supposed to have a “stimulating” effect. Bitcoin, meanwhile, is simply controlled by supply and demand, a mechanism that seems to be working very well in light of the current climbing game of cryptocurrency.
The crypto market leader has gained more than 15% since the beginning of the week, reaching spheres that were last reached at the end of 2017.
According to the crypto analyst PlanB and some of his colleagues, this does not come as a surprise, because according to the so-called stock-to-flow forecast model, which relates the amount of Bitcoin in circulation (stock) to the rate of increase (flow), such a price development is after the “Halving” in May the logical consequence . Indeed, investors seem to be following that prediction.
Investors are no longer just private investors, because institutional investors are increasingly discovering the cryptocurrency for themselves. Payment service provider Square made 80% of its revenue from Bitcoin in the third quarter of 2020 .
“There is no Bitcoin to sell more” as the Twitter users Girevik the current situation summarizing .