The Federal Reserve may inject up to $2tn in liquidity relief for banks, which could encourage smaller banks to lend out more money, rather than hoarding cash. As a result, the US market is expected to see a rise in riskier assets. Crypto is also looking bullish, as Bitcoin price nears $27,000 and we head towards the next Bitcoin halving. Finance is adding to the momentum by converting $1bn in BUSD into Bitcoin, BNB and Ethereum, creating more buying pressure and possibly squeezing shorts. As a result, investors should consider holding Bitcoin and Ethereum, assets with real utility, and those that cannot be inflated away.
The Market is About to Go Insane: Should You Consider Getting Some Assets?
If you are not holding any of the assets that have been talked about in recent times, it is high time you consider getting your hands on some, as the market is about to go insane.
The Opposite Happens Often
Oftentimes, when everyone thinks one thing, the opposite happens, but we have seen some signs that the Federal Reserve (FED) is going to inject money into the system. It is great for risk assets, and we will talk about what is happening today and what we should do about it.
Bulls on the Rise
Some bears, like Alex Becker, were short-term bear, but he said, “congrats Bulls, you’ve earned this one.” So, some of the bears are starting to lay down their shields because even they think now that we are going to have a bullish market. They think that the bottom is in, and we are going to have a bull market or a bullish market.
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Crypto on the Rise
Some bowls or some bears are now bowls, and crypto is racing up. Bitcoin is nearing 27,000, which is the highest point that we’ve seen in a while. We’re well above the 200-week moving average, and that’s for a couple of different reasons.
First of all, we had decent Consumer Price Index (CPI) and really good Producer Price Index (PPI); PPI came in at 4.4, below the estimate of 5.2 percent. Also, January PPI was revised down; this is a leading indicator.
The Fed and the Banks
The Fed may provide as much as two trillion dollars in liquidity relief for banks, which is so big because there’s a thought process that smaller Banks were going to be a little bit cautious, and it was going to hurt the economy. The Fed is now providing 2 trillion in liquidity, and they’ll buy bonds at par value or at Face value, which is making it so that Banks can be a lot more aggressive buying up bonds.
The Economy is Still Looking Good
The economy is still looking good because we still have unemployment claims coming in pretty low. The Fed probably won’t have to raise rates aggressively because inflation’s coming down.
We have one of the largest air drops, probably the largest air drop in crypto history, coming March 23rd. It will inject a lot of money into the system specifically into crypto. A lot of crypto users will get money and sell this airdrop and reinvest it into some of their top cryptos. A lot of money is going to be made.
Bitcoin and Utility
We’ve seen a huge UK use case for Bitcoin over the last week, which is crazy because people thought Bitcoin was just a risk asset. Now they’re starting to see it as having actual utility, and with all this inflation going on with the money printing, there’s just so much liquidity in the system.
Finance Adds Fuel to the Fire
Finance is going to add some fuel to the fire; they’re converting one billion dollars into Bitcoin BNB and ethereum. It’s going to create more buying pressure, which is going to liquidate some shorts, so we could see more squeezes, and maybe this is part of what’s happening right now. All this is really showing that you should hold some Bitcoin, in my opinion, maybe some ethereum, and then buy some alts if you want, but it makes sense to buy risk assets when the FED’s injecting so much liquidity into the system.