For the third consecutive day, the US Federal Reserve has poured more money into the system, raising widespread fears that the situation will get out of hand. The irony is that US regulators are constantly thinking of manipulating the cryptography markets as if it were happening on a large scale right in front of their noses.
Bitcoin and Ethereum combined market capitalization
Another day passes and $ 75 billion flood the American financial markets. This seems to be a routine now – and for the FED, it has become exactly that, as the economic system is more and more leaked.
To prevent the federal funds rate from further increasing, the central bank injected more money into the system on Thursday. So far, $ 203 billion has been invested in the markets this week. This corresponds to the common market capitalization of Bitcoin and Ethereum at the current level.
There seems to be more to come today, which makes the total higher than the total market capitalization of cryptographic assets.
UPDATE: The New York Fed plans to inject an additional $ 75 billion into the financial system on Friday (tomorrow).
That's over $ 275 billion in four days this week.
Add to that the two recent rate cuts and you could argue that the Fed is fighting the start of a recession …
– Pomp (@APompliano) September 19, 2019
An increase in short-term interest rates this week has threatened to disrupt the bond market and the entire credit system. This latest overnight repurchase agreement (repo) reached a target corridor of 1.75% to 2% a day after the Fed lowered its key rate, according to Business Insider.
This is the first time since the global financial crisis of ten years that the central bank is taking such measures. At that time, it was the massive loan of subprime mortgages by banks and financial companies to finance their own derivatives operations, which caused the financial disaster and the slump in the market. Fed President Jay Powell has done everything possible to minimize the severity of the action this week.
"If these issues are important to the functioning of the market and market players, they have no impact on the economy or on monetary policy."
Manipulation of the crypto market … Really?
In the meantime, shouts of market manipulation have been heard by the cryptographic community. The reaction of the regulators is confusing. Comments Welson Trader:
"When 10,000,000,000 links are printed, everyone shouts," Market Manipulation. "
But when the FED prints 130 billion dollars, it is only "open markets".
It should be noted that Tether is not a government – but the principle remains and it is said that crypto still has a bad reputation on the part of those who otherwise justify other tactics of large-scale market manipulation. .
Jay Clayton, president of the Securities and Exchange Commission, has again called for a new regulation of cryptography this week. CNBC did he say
"If (investors) think prices are as stringent as on the Nasdaq or the New York Stock Exchange … then they are wrong, we have to go to a place where we can be sure that trading is better regulated. "
We are here: central banks are allowed to screw up the markets, but we are supposed to do a few rounds in bitcoins.
Proof of text: newsbtc