Good evening to all my friends. I hope you all are doing well. I am having a fantastic day. Let's talk about crypto market. Ethereum is pumping hard after breakout from 3500$. Today i am going to discuss about Quantitative Easing (QE) and the possibility of the Federal Reserve making a statement about it in December. Looking at the Fed's balance sheet from 2022 to 2024, we can see a $2 trillion decline, which means $2 trillion has been wiped out from the balance sheet due to the Fed's actions. When we talk about QE or Quantitative Tightening (QT), it refers to the process where the Fed either prints fresh money (QE) or reduces its holdings (QT). Over the past two years, we've seen QT, where the Fed has been pulling liquidity out of the system by reducing its holdings in U.S. Treasury bonds and agency mortgage-backed securities.
The Federal Reserve recently cut rates by 25 basis points in November and is monitoring U.S. data to decide if further cuts are needed. However, despite rate cuts, money printing (QE) hasn't started yet. Historically, after several rate cuts, the Fed began printing money. For example, in 2008 and 2020, QE followed rate cuts. Now, after two rate cuts in 2024, many expect money printing to begin soon. When the Fed prints money, risky assets like Bitcoin often rise. In 2020, Bitcoin surged from $6,000 to $69,000 as the Fed expanded its balance sheet. The key question now is when the Fed will start QE, which will depend on upcoming data like U.S. unemployment and CPI reports in December. That's it for today. Here's the latest update video of crypto market. Thanks & have a good day!!
@abfarhan