BTC / USD fell sharply overnight as we were on the verge of hitting an all-time high. The origin of this decline can be found in the FED minutes released yesterday and the IMF statements. The US Central Bank has given food for thought to anyone waiting for a sign to short Bitcoin (BTC).
” There are limits “…
The FED minutes are an account of what he said at the last monetary policy meeting. Here is the key passage of these minutes (published last night at 8 p.m.) which shook the markets:
“Several governors have noted that there may be limits to the amount of assets the Fed can add to its Balance Sheet (Quantitative Easing) given low long-term rates. They said a significant expansion of the Fed’s Balance Sheet could have unintended consequences. “
This flowery language means that several governors (and not the majority) begin to doubt the effectiveness of infusing the financial markets (sorry, the economy …) on monetary steroids. In any case, that’s what they claim. Those who regularly follow the Fed’s press releases know that these minutes are often the occasion to slip in some phrasing allowing to influence the markets.
The timing of these statements is very suspicious because the President of the IMF, Kristalina Georgieva, made similar comments yesterday. And all this while the Bitcoin was very close to a new historic high …
IMF vs Bitcoin
The boss of the IMF said that ” more monetary stimulus could pose significant risks to financial stabilitye “before adding that” the collapse of economic activity induced by the pandemic has put pressure on central banks to cut rates further and relax their monetary policies (QE), but that it is not possible to continue with the old recipes. It won’t be enough today “.
Kristalina Georgieva hit the nail on the head by warning that ” central bankers will have to strike a balance between boosting inflation and output, and building up financial vulnerabilities “.
In other words, the IMF reports that current monetary policy only serves to boost the stock market. This is a discourse compatible with the fact that the IMF is pushing very strongly in favor of CBDCs which would be distributed in helicopter currency mode. One way to boost inflation without creating “financial vulnerabilities” aka stock market bubbles.
It all sounds a lot like a concerted attack by the IMF and the FED to stumble the Bitcoin. Never forget that the Bitcoin is the nemesis of central banks and that they will do everything to delay the day when the 21 million Bitcoins will be worth as much as all the gold that has come out of the earth …
Do not panic
Readers of Thecointribune know that the debt and money creation ponzi cannot stop. The system is so made that we must perpetually create new debts larger than the previous ones or else a recession.
This is what the FED minutes further state about the opinion of the majority of governors:
“The governors noted that the Fed could further ease its monetary policy, if necessary, by increasing the pace of debt purchases (quantitative easing) or by moving its purchases from the Treasury to those with a longer maturity without increasing the size of its debt. purchases. “
This is a very “Dovish” statement as we say in Central Bankers jargon. It’s about buying longer-term debt than usual. Which means an even longer increase in the money supply.
So, do not believe that Bitcoin missed the mark. These few statements from his enemies are just lip service. They continue to print hundreds of billions every month and prepare for the launch of CBDCs. The new version of the Fiat Shitcoin will not change the fact that Bankers can only get out of the debt trap by creating inflation. Point bar.