Bitcoin more beneficial as Federal Reserve Bank of New York injected another $56.72 billion

Whenever the economy shows signs of instability, cryptocurrency always plays an essential role as a safe-haven asset. Recently, the Federal Reserve Bank of New York has just pumped a bunch of new money into the financial markets. Every time so, for a deflationary currency like Bitcoin, it is even more beneficial.

bitcoin-more-beneficial-as-federal-reserve-bank-of-new-york-injected-another-56-72-billion

Federal Reserve Bank of New York has just injected another $56.72 billion

The strongest attribute of Bitcoin, as well as cryptocurrency, is anti-inflation. And this advantage of cryptocurrencies is made more accessible by the limitations of the current fiat system.

The New York Fed injected an additional $ 56.7 billion, yet another case for Bitcoin

According to The Wall Street Journal, the Federal Reserve Bank of New York has just injected an additional $ 56.72 billion to reassure the market when it enters 2020. The New York Fed has pumped money through repurchase agreements (repo) into two separate stages. The first was an overnight repo of $ 29.05 billion and another through a $ 26.67 billion repo in two weeks.

The repo market experienced considerable stress in September. More than $ 3 trillion in debt is financed every day through short-term mortgages. It’s like the world’s largest pawnshop, where cash and stock meet. In September, the Fed committed $ 400 billion of funding to this seemingly broken market based primarily on debt.

Overall, the NY Fed’s new cash injection seems to be an attempt to buy time before the repercussions of this broken repo market are felt for us all.

Central banks scrambled to keep the Afloat market

Central banks have been struggling to keep the market emerging since then, leading to bailouts and massive cash injection. The result is a restored repo market with the Fed now exposed to several risks – which taxpayers may eventually have to pay if it all falls apart.

A story is a story we have heard many times before, but an economy speculates about money that is not merely unsustainable. That is why Bitcoin has become an attractive alternative. It only does not have these inflation trends and is a ‘sound currency’ throughout.

However, Bitcoin and other cryptocurrencies still have a lot of work to do. The new Fed injection may remind us of Tether’s USDT minting. Many of us are thrilled when it happens in the cryptocurrency market because it tends to pump prices – but if you’re serious about blockchain adoption, then the hypocrisy should be apparent.

An economic crisis doesn’t seem to be happening, but the NY Fed’s $ 56.7 billion injection will be a worrying warning sign…

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