Post
Topic
Board Bitcoin Discussion
Re: THIS CRASH IS DIFFERENT than previous crashes... The FEDERAL RESERVE is why....
by
HardFacts
on 22/06/2022, 13:49:01 UTC

I mean, QE 3 ended at the end of 2014, when bitcoin's price was ~$350. By the time bitcoin peaked at ~$20k at the end of 2017, the Fed's balance sheet had been static for years, and indeed they were just starting to reduce it. The peak of ~$13k in 2019 came at a time when the Fed's balance sheet was the lowest it had been in 5 years. This run up was absolutely influenced by more money printing, as I said on the first page of this thread, but bitcoin has not only survived times when there was no money printing or indeed active steps to reduce the outstanding balance, but has even hit peaks during these times.

You are ignoring a very important fact:  Interest rates have been NEAR ZERO for the entire time of Bitcoins existence.   Near Zero interest rates, with a high balance sheet by the Federal Reserve ( there was never any significant reduction, it was tiny ) is HIGHLY STIMULATIVE monetary policy, the same policy that produced the 2006 Housing bubble.

Near Zero interest rates, AND Massive Quantitative easing by the fed over the last 14 years is unprecedented in history, and produced many bubbles in assets that should be near zero.  BITCOIN, NFT's,  Zombie Companies that will never make a profit etc. etc.