๐ฅ๐จ FED MAY CUT & TURN THE LIQUIDITY TAP BACK ON! ๐บ๐ธ
The Federal Reserve is expected to cut rates to 3.50%โ3.75% on Wednesdayโฆ but thatโs NOT the only thing markets are watching ๐
Bank of America now expects the Fed to:
โก๏ธ Increase monthly Treasury Bill purchases by ~$45B
โก๏ธ Keep bank reserves from tightening
โก๏ธ Support short-term liquidity
When you add MBS reinvestments, total flows could reach ~$60B/month ๐ต
๐ Not officially QE โ but still liquidity support.
Why this matters for crypto:
๐ธ More liquidity = more risk-on appetite
๐ธ Supports financial markets
๐ธ Eases liquidity stress
๐ธ Could indirectly boost Bitcoin momentum
Some are calling this โsoft QEโ โฆ but technically itโs Reserve Management Purchases, aimed at avoiding liquidity cracks, not stimulating lending.
Still โ markets love liquidity ๐
Watch Bitcoin closely this week.
#Bitcoin #CryptoNews #FOMC #FED #Markets #BTC ๐
