Renowned crypto analyst Michael van de Poppe has suggested that Quantitative Easing (QE) may be occurring quietly. He estimates that about $30 billion is being added each month through Treasury Buyback Operations, a move that could have a significant effect on the cryptocurrency markets, especially Bitcoin.
What Is Quantitative Easing?
Quantitative Easing (QE) is a monetary policy where central banks buy government securities to increase the money supply and stimulate the economy. Although QE has not been officially announced, according to Michael van de Poppe, it is happening around the corner.
However, he claims that liquidity is being increased through Treasury Buyback Operations, a move that has largely gone unnoticed by the public.
Effects on Global Financial Markets
If van de Poppe’s observations are correct, the increase in global liquidity could greatly impact financial markets. More liquidity often leads to lower interest rates and higher investment in riskier assets like cryptocurrencies. This could result in more capital flowing into markets that are currently experiencing volatility and uncertainty.
Bitcoin as the Solution
Van de Poppe points to Bitcoin as the answer in light of this potential monetary shift. As a decentralized digital asset, Bitcoin offers an alternative to traditional fiat currencies that may be affected by such monetary policies.
His suggestion aligns with a broader narrative within the crypto community, which sees Bitcoin as a hedge against inflation and centralized economic moves.
However, at the recent Bitcoin Conference 2024, former U.S. President Donald Trump mentioned his interest in using Bitcoin (BTC) as a “strategic reserve” asset.
Rejoice, the Market is Recovering!
The crypto market is showing signs of recovery after the recent Black Monday crash across global markets. Pioneer cryptocurrency Bitcoin’s (BTC) price has now reached the $55,105 mark, representing a 10.4% surge from its recent fall in the last 24 hours.
Meanwhile, Bitcoin’s dominance decreased by 0.20% over the past day to 56.82%, suggesting that altcoins are performing better today. Leading altcoins like Ethereum (ETH), Solana (SOL), and XRP have also increased, following the broader market trend.
Also Check Out: Bitcoin Death Cross Could Lead to a Catastrophic BTC Price Crash
As the crypto market heats up, keep your eyes on the potential impact of QE.
