Good Sunday to everyone☀️ Last week, without making any press announcement or creating major news, the Fed purchased $43.6 billion worth of Treasury bonds. On May 8, it bought $8.8 billion worth of 30-year long-term bonds in a single day. At the beginning of the week, it made a purchase of $34.8 billion. The Fed actually quietly pumped money into the market. So technically, we can call this secret monetary expansion. Why is this important for those of us trading in crypto and stock markets? Because the Fed normally tightens, meaning it sells bonds. What it's doing now is the exact opposite, providing liquidity again by buying bonds from the system instead of withdrawing money. Usually, such quiet moves can be harbingers of major fluctuations. These types of monetary expansions raise questions like: Is the liquidity problem growing? Is there stress in the banking system? Has a lack of demand formed in the borrowing markets? When these questions start being asked, the instruments that will benefit the most are Gold, Bitcoin, and stock markets.
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