40 Billions$👇
The US Federal Reserve (the "Fed") just announced they're starting to buy about $40 billion worth of short-term government bonds (called Treasury bills) every month, kicking off right now in December 2025.Why are they doing this?
Banks need a certain amount of "cash reserves" to run smoothly and lend money without issues. Recently, those reserves got a bit low, so the Fed is adding extra money into the system to keep things stable and prevent any borrowing hiccups (like what happened back in 2019).Is this "money printing" like in 2020?
Not really. It's more like routine maintenance to keep the financial pipes from clogging. It's not a big stimulus program to boost the economy—it's technical stuff to maintain "ample" reserves.What does it mean for Bitcoin and crypto?
More money floating around in the system (called liquidity) is usually good for risky assets like stocks and crypto. It makes borrowing cheaper and encourages people to invest in things like BTC instead of super-safe bonds. Some crypto folks are hyped, calling it a big bullish signal. But others say chill—it's not as massive as full-on QE from the pandemic days, so the pump might be milder.Bottom line: It's positive for markets overall (more liquidity = easier risk-taking), but don't expect 2021-level moonshots just yet. Could help BTC and alts get some extra juice though! What do you think—bullish or overhyped? Drop your takes below!
