After days of falling markets, the US Federal Reserve (Fed) has injected an additional $ 168 billion into the economy – the total amount is higher than the value of all Bitcoin currently circulating.
"Private auctions on Tuesday in the short-term loan market, also known as repos, saw a massive 2-week cash loan offer, with $ 95 billion provided for an operation worth $ 45 billion, "according to one short news March 10, CNBC: “An overnight offer saw the New York Fed trading desk fill $ 123,625 billion in bids.”
Basically, the US Federal Reserve has put more money into operation in the economy.
Bitcoin's current market capitalization holds less capital
According to data from CoinMarketCap, the total market capitalization of Bitcoin at the time of writing is only about 145 billion USD.
Thus, the US government handled the cash only about 23 billion USD less than all the money held in Bitcoin. Taking its status as a global asset into the story, one could argue that Bitcoin could still be a minor role in the financial game.
The Fed was forced to act in a volatile market
Traditional markets have faced significant declines in recent times as fears of corona virus and oil price wars continue to rage.
Oil fell more than 20% in just one trading day on March 9 – the worst decline since 1991. Meanwhile, the Dow Jones fell 7.8% on the same day.
The Fed's capital injection on March 10 seems to have “provided more oxygen” to the mainstream markets, through which the Dow rose back to 4.9% the next day.
On the other hand, Bitcoin has not seen a similar recovery. The largest cryptocurrency has grown by only 1.39% in the past 24 hours.
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According to CoinTelegraph
Translated by ToiYeuBitcoin
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