Topic: $175 billion just printed and the Bitcoin price goes down! - page 4. (Read 722 times)

I think it is highly unlikely that it's that much connected but since the banks are in debt maybe it is the government that is more or so affected and as far as I remember there is no government that is so involved with the bitcoins.

If this 5% down coincidentally coincides with this I don't think there might be any reason ... Their economy is going down not our Bitcoins ...it's global.

I appreciate those are daily volumes. What I meant was that for pretty much the entire year, the daily volume has been sitting at around $50-80 billion. Apologies for not being clearer.

As you correctly point out, the federal funds market and the numbers given above and in your link also includes a number of other trades. This makes it even more concerning when there is sudden and unexpected loans of $75 billion being given out overnight. The banks are struggling, and we all know what happened last time that was the case.

Here my source:

https://apps.newyorkfed.org/markets/autorates/fed%20funds

Fed funds overnight trades have been on that size for daily volumes. Fed funds market involves also longer term operations , or even different kind of trades, that aren’t accounted in that statistic.
Anyway: banks are screwed because of many other reasons! We do agree on this.

As usual and this is how the reality works and we cant able to stop them on how they do gonna supposed to used of those printed money out of nowhere.

Using it up directly for the sole purpose on taking down something wont really be that possible.There would be lots of priorities to think off rather than on
focusing into a single issue and its way too more obvious if they did that.

You are correct here.

This wasn't the money market though. This was the federal funds markets, which is several orders of magnitude smaller. The fed funds market has been sitting at around $50-80 billion all year, so this represents a significant amount of money. I agree that this is unlikely to have any immediate effect on bitcoin price, but I disagree with you saying it is not an issue. Banks are currently overly relying on the fed to keep up with their liquidity and reserve requirements. The last time we saw this was in the run up to the 2008 crash.

Unfortunately, that type of money will be never seen by the regular folks and that's the problem.

When a new money printed it usually covers the "debts" of a nation or series of companies and that causes the real trouble, money out of thin air is not something central banks do to actually cover the costs of lets say medical bills of its citizens, that would help a lot of people get back on their feet but they won't do it, it is not spent on education neither, it is not spent on science for sure.

It all goes to banks and wealthy so they won't go down because if they do than they take all the country with them. That is why I personally think that this will not end well but will make the countries economy go bigger, it will get better but for the wrong type of people.

My only point is that I wanted to point out it is not true the FED printed 125 Billions of USD. They didn’t .
Then we can discuss about the opportunity to conduct operation to provide the market with a liquidity they were seeking with an overnight rate of 10% (this rate should have been in the 2.10%-2.15% zone instead). In addition to that 125 BLN is a drop in the ocean on the money market size. A market that is way bigger than Bitcoin (175 Billions) or the 125 billions equity derivative book of a single troubled German bank is trying to sell as we speak.

Of course I understand l am writing on bitcointalk.org so not only not everyone has a specific knowledge of how this things develop and why happen, and have a (rightful) tendency to interpret everything on with and anarcho-liberist view.
What I can say is that bitcoin is a complex subject, at the crossroads of many different fields in the human knowledge (cryptography- distributed networks-game theory-monetary theory to name the most important).
Well, for my personal history I think I can give most of my positive contribution on the latter field. So while I might miserably fail giving programming tips or indicating what syntax a .blk file has (true story), I feel pretty confident in saying that this is not an issue, and this particular fact, that way even reported on a very incorrect and superficial way, by no mean can have direct or indirect influence on bitcoin valuation.
There are way more disturbing act by the CB’s influencing bitcoin valuation hundreds times more than this. Don’t get lost analysing a detail losing the big picture.

We might discuss how negative rates, QE and KYC/AML and institutional money influence the bitcoin valuations, these are facts way more important. Please point me in the right direction if you know some thread where you are discussing these.

The great deal about is that printing new money means that dollar will be less valuable in the end and that will create an inflation and people will certainly stay with bitcoin because there is no more new printed so when you calculate how much bitcoin is going for how many dollars in the world the % changes and it becomes lower and lower which means bitcoin will eventually worth more.

I know it sounds like something that should made bitcoin go up instead of 5% down but that is just the short term near sighted result for now, if you wait long enough I am sure eventually bitcoin will go up in price because of inflation. We just have to wait and see how bitcoin will react to it over time, now that halving is coming close the "printing" of our money will be cut down in half as well.

Bitcoin and Gold both haven't done much lately. I think the main point is that we have to understand how investors think, and their gameplan is to front run everything they consider important enough to potentially influence the price. I'm strongly of believe that investors are quite disappointed because they expected much worse measures to be taken, also when it comes to the ECB.

Another reason why Bitcoin isn't doing much is because it's stuck in what appears to be a bearish formation, which we will see it break out of in 10ish days. It could very well be that investors are waiting for that breakout to become active again. Perhaps that moves comes sooner with Bakkt going live next monday. We'll have to wait and see.

You cannot conclude that they are gullible because to the extent of their own understanding they are doing the right thing. Also, government printing more money does not necessarily means creating money out of the tin air because a large portion of it would go to replacement of shredded notes that have been retrieved from the economy and also, huge money would have equally be expended in the printing of the money which means the effect in the area of creation of wealth is just going to be marginal if it will have any effect at all.

On the relationship to the price of bitcoin, I personally think its really because bitcoin and the crypto market has not grown to maturity that is why its responding to the printing of currencies of just a country and this wont be there till forever.

Haven't heard of this news but I guess this is more reason to hold bitcoins or even buy more as the price goes down. We all know that we're ripe for another crash. Even without this injection there are reasons to safeguard our money before it becomes worthless.

Probably true on everything. Seem like banks dont have answer for this and they try by printing to gain something maybe little control and destabilizing the crypto market.
Printing such large amount can be for many reasons and factor and probably they are only who knows the right one. The things we read from papers and everything else is just something that they want us to read and speculate. Considering price recovered thins is first sign that it was not crypto related.

175 billion dollars is peanuts.
Such small amount won't change anything in the US economy or in the global economy.
By the way,the bitcoin price recovered from the 5% nose dive,so I think it's wrong to search for a correlation between the bitcoin price and how many billions were printed by FED.
There's no bear trap and Bakkt won't change anything.

Well, without going into too much detail about this, we can see that governments are manipulating the value of your wealth. Bailouts and rescue practices are either hiding the real problems or they are postponing the economic collapse. 

So tax payers money are used to serve as a safety net for greedy financial institutions and the general public are paying for it. The Banks and the Reserve Banks are part of the problem with the fiat system and the government are protecting them. 

and now the price is back to 10200+
Moon Soon?

Will that really happen? I mean after the $20k ATH last 2017 many speculated that it would even go to $50k on 2018 but what happen devastated everyone in the crypto world. I'm not saying that it would crash but I just don't  want that to happen again. I'm even willing to sold my ltc holdings bought at 0.012 for bitcoin but still hesitant about what happened last year. Opinion guys?

It is unlikely that there is a direct correlation between printing additional amounts of paper dollars and lowering the price of bitcoin. Such manipulations with cash occur regularly, but this did not affect, at least noticeably, the price of bitcoin. In the world there are various financial processes with cash and it is hardly worth paying serious attention to such a fact in a single state.

I appreciate that, but my point still stands. If this was due to a payment date (I'm not sure it was,  but let's assume for the sake of argument), then those payments were completely predictable, and yet the banks still couldn't pay them. The rates were only going up too fast because too many banks were running out of liquidity and having to borrow.

Yes, this is a tool the Fed can use, but they only had to use it because banks were irresponsible and backed themselves in to a corner. The fact that banks can print so much money out of thin air that they run out of even the small fraction of reserves that they keep and the Fed has to step in is a symptom of just how messed up fiat money is.

FED is not bailing out banks.
Capital markets are well functioning and banks were trying to cover a massive reserve drain of roughly 170 billions in a few days (equivalent to the while bitcoin capitalisation, btw) because of a large fiscal payment date is approaching for many corporate in the US.
Overnight rates were going up too fast, too quickly, so the FED downplayed the move with one of his tool.
I can go very technical on this if you want, but believe me not to read too much into that.

More like a correction to me rather than a bear trap but our views is headed in the same direction that Bitcoin is headed to go up. I do think that there is no connection of Bitcoin going down because the US has printed more money it's just 175 billion dollars spread out in every market and it covers everything to the point it won't have any effect in ours. Like I said this is just a a correction since we have been consolidating for so long and Bitcoin has just decided to take a first move in the market. The price did bounced well in the trend lines and we are now back up again at the 10,000$ level it may not have removed its loss today but  I think it's better than not recovering some of it at this moment. We are lucky that we had a correction as it also made the RSI oversold which is a good sign at the 10k level, we might see some early push in the coming days.