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‘Get Ready for Bitcoin $20K,’ Says BitMEX CEO As Fed Gears Up for $75 Billion Liquidity Pump

source-logo  dailyhodl.com 18 September 2019 13:33, UTC

 

Arthur Hayes, CEO of the Bitcoin Mercantile Exchange (BitMEX), the world’s largest cryptocurrency derivatives exchange, is predicting Bitcoin (BTC) will surge to $20,000 as the US Federal Reserve heads toward massive quantitative easing measures – implementing the first such measures since the 2008 global financial crisis.

QE4eva is coming. Once the Fed gets religion again, get ready for #bitcoin $20,000. https://t.co/gCBgaernYv

— Arthur Hayes (@CryptoHayes) September 18, 2019

According to Tuesday’s announcement,

“The Federal Reserve Bank of New York will conduct an overnight repurchase agreement operation … to help maintain the federal funds rate within the target range of 2 to 2-1/4 percent.

This repo operation will be conducted with Primary Dealers for up to an aggregate amount of $75 billion.”

A surge in borrowing rates on Tuesday forced the Fed to conduct an “overnight reverse repo operation” to reduce pressure in the financial markets.

The central bank attempted to ease stress by purchasing Treasuries and other securities, injecting an initial round of $53 billion in cash.

The Fed’s goal is to keep pumping money into the banking system to keep borrowing costs low.

Says Bitcoin advocate and Wall Street veteran Caitlin Long,

UGLY UGLY UGLIER in repo markets today.”

The repo market is ground zero for cracks in the financial system, just as it was in 2008. This is 4th such repo market crack (underway for >1yr, and coming to a head). Keep a close eye on this…esp its spillover into money markets & bond markets…”

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