The CEO of Strike has criticized the Federal Reserve, claiming that it is destroying the financial system. In a statement, the CEO warned that the policies of the Fed are leading to a dangerous bubble in the markets, and investors should be aware of the risks. The Fed’s easy money policies are causing inflation, asset bubbles, and creating instability in the financial system. The CEO has urged investors to be cautious and to take steps to protect their wealth before it’s too late. This news highlights the ongoing debate around the Fed and its role in the economy, and is likely to be of interest to investors and financial professionals.
Federal Reserve Injects $300 Billion, Bitcoin Predicted to Rise
Bitcoin may be looking to rally following the Federal Reserve’s $300 billion injection to the banking sector last week, according to Strike CEO Jack Mallers. Mallers argued that the US dollar is now entering into an era of persistently high inflation, which can only benefit Bitcoin. In a CNBC interview, Mallers explained that Bitcoin is a fixed supply money compared to the dollar, which is not, and thus Bitcoin will appreciate against dollars as more of the latter enters circulation.
The Federal Reserve’s new Bank Term Funding Program has contributed to the backstopping of the banks with $300 billion, reversing half of the progress it had made in shrinking its balance sheet over the past year. This action is aimed at tempering persistently high inflation, which reached 9.1% in June, back to its target of 2%.
Mallers predicts that inflation within the range of 5-10% will be normalized, given the Fed’s recent bank bailout. BitMEX co-founder Arthur Hayes has a comparable view, stating that the Fed’s new program will usher in “infinite money printing.”
In addition, on-chain analytics firm Glassnode has observed key on-chain indicators that Bitcoin has returned to early-bull territory. With over 122,000 new Bitcoin entities created every day last week, the level is greater than 90% of days in Bitcoin’s history, with transactions reaching a total of 309,500 per day, indicating that investor activity is increasing. These developments suggest a remarkable strength and a reflection of belief in Bitcoin’s important future role in the global financial system.
In conclusion, Bitcoin may be on the brink of rising as investors turn away from the dollar and towards alternative fixed-supply assets like Bitcoin in a persistently high inflation environment.