Bitcoin and Crypto Will Rise Again as Fed Sets to Resume Money Printing: InvestAnswers

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A popular analyst says that Bitcoin (BTC) and crypto markets could be boosted by the resumption of monetary expansion.

In a new video update, the pseudonymous host of InvestAnswers claims that global liquidity, or the amount of money flowing through the system, has always been one of the best predictors of movements in the crypto markets.

The analyst says that with a slight decline in liquidity over the past year, the trend is likely to reverse and boost Bitcoin in the process.

Global liquidity has plummeted because the United States is manipulating its money supply. Its down 4% or 6% since the start of the year, and that had a big impact on that gold line crossing the bitcoin line. Normally, when liquidity increases, Bitcoin increases, with a small time lag. Sometimes it’s the exact same time, such crazy, crazy times here.

You can see here that liquidity has plummeted, but with everything that’s going on with raising debt ceilings and other economies around the world like Germany realizing they’re in recession, it feels like money will start again. [Im] pretty sure of that. And it will also drive up the prices.

Source: InvestAnswers/YouTube

BitMEX founder and crypto veteran Arthur Hayes recently stated that the Federal Reserve will likely have to print money to pay interest on reserve balances, thereby increasing liquidity in the system. Hayes predicted that wealthy asset holders who received interest payments from the Fed will likely buy risky assets with the proceeds.

All that interest paid is actually a stimulus package for wealthy asset holders. What do wealthy asset holders do when they have more money than they need? They buy risky assets. Gold, Bitcoin, AI tech stocks, etc. will all be beneficiaries of this wealth printed by the government and distributed in the form of interest.

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