Fed Go Buy $43.6B Treasuries For Inside Hand For May, Dey Show Say Small QE Dey Hide And E Push Bitcoin Up
For May, America central bank, dem dey call am Federal Reserve, do wetin dem never do for Treasury market since 2021. Dem go buy US Treasuries wey cost $43.6 billion small small, and dis one no follow wetin dem talk before say dem wan reduce money inside circulation. Dem do dis one after di Treasury Department no fit sell all di $150 billion government bonds wey dem plan to sell, so dem get $72 billion shortage. People wey sabi market analysis say wetin Fed do be like hidden way to put more money inside circulation, just to make sure say market get enough cash and make e no dey too unstable. At di same time, Moody's reduce America credit rating go AA1, meaning say America no get dat high AAA rating again from all di major agencies. Dis reduction go fit make Treasury yields higher and make government borrow money costly.
Crypto traders dey watch dis tins well well, becos when dem put more money inside circulation and dollar weak, e dey make risky assets like Bitcoin, Ethereum, XRP, and Solana sweet for people wey wan invest. For short term, crypto market fit look good becos of money wey fit enter and becos people no trust traditional financial assets like before. But we no too sure about wetin go happen for long term, becos wetin Fed go still do, plus di changes wey dey happen for government spending and rules, go determine how risky and unstable di market go be generally. Dem tell traders make dem shine eye, especially when America dey talk about dem money policy for future.
Bullish
Federal Reserve wey dem dey buy Treasury bonds for corner-corner plus credit rating wey dem reduce don make pipo expect sey money go plenty pass before and make dem no trust US dollar and di old-school safe assets again. For past times, dis kain tins don make crypto like Bitcoin run well-well because dem no plenty and dem get di 'risk-on' style. For short time, dis wahala go likely push positive feeling, make pipo buy more crypto wey sabi. But di long time palava dey tricky small, e go depend on wetin Fed go do later and how di economy go be. Even with dat, di market now show sey crypto assets get good good trend, making dem fine for traders wey wan protect demsef against too much money and financial trouble.