Bitcoin (BTC) Bulls Say It's Time for 'Plan B' as Fed Ramps Up Repo Operations

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Fri, 03/20/2020 - 19:47
Alex Dovbnya
Anthony Pompliano claims that the Federal Reserve doesn't plan to stop after announcing $1 trln repo operations that will be conducted every day till the end of March
Cover image via stock.adobe.com
Contents

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 virtually zero and started a $700 bln QE program.

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It's time for PlanB

Barry Silbert, the CEO of Digital Currency Group, was seemingly shocked by the fact that the Fed is going to funnel that much cash into the struggling economy every day, tweeting the #PlanB hashtag. 

Meanwhile, famous Bitcoin proponent Anthony Pompliano predicts that the Fed will not stop there with its repo operations. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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