Federal Liquidity Injection is Equivalent to 13 Million Bitcoin (BTC) Per Day into the Markets
According to a report by CNBC, the Federal Reserve is significantly increasing the amount of temporary liquidity that it is providing the financial markets. Currently, it is providing $75 billion for repo operations, but this will increase to $120 billion this week. Repo is a form of short-term borrowing from dealers that comes in the form of government securities. The report explains that the New York Fed made the announcement but did not explain the reason for the increase.
Mike Shumacher, the global head of rate strategy at Wells Fargo Securities, stated that the injection is evidence that the Federal Reserve “will not back off” as the year-end nears and that it is seeking to take out more insurance.