Bitcoin and Crypto Set to Rebound as Fed Ready to Resume Money Printing: InvestAnswers

A popular analyst says Bitcoin (BTC) and crypto markets could get a boost as monetary expansion resumes.

In a new video update, the pseudonymous InvestAnswers presenter says that global liquidity, or the amount of money circulating in the system, is historically one of the best indicators of crypto market movements.

The analyst says the trend is likely to reverse given the slight decline in liquidity over the past year, giving Bitcoin a boost in the process.

“Global liquidity has declined because the US is manipulating its money supply. So far it’s down 4% or 6% year to date and that was a major factor in this gold line crossing the bitcoin line. Normally, when liquidity increases, bitcoin also increases with a small time lag. Sometimes it’s exactly the same time, so crazy, crazy times here.

As you can see here liquidity has dropped but with all the events happening with the raising of debt ceilings and the realization that other economies around the world like Germany are in recession the money printing will start again. [I’m] I’m pretty sure about it. And that will also drive up prices.

Source: InvestAnswers/YouTube

BitMEX founder and crypto veteran Arthur Hayes recently said that the Federal Reserve will likely need to print money to pay interest on reserve balances, increasing liquidity in the system. Hayes predicted that wealthy asset holders who have received interest payments from the Fed are likely to use the proceeds to buy risky assets.

“All this interest paid is effectively a stimulus package for wealthy wealth holders. What do wealthy wealth owners do when they have more money than they need? You buy risky assets. Gold, Bitcoin, AI tech stocks, etc. will all be the beneficiaries of this “wealth” that will be printed by the government and paid out as interest.”

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