According to the major US bank JPMorgan Chase & Co, the US Federal Reserve’s Term Bank Financing Program (BTFP) could inject up to $2 trillion into the country’s banking system to compensate for the liquidity crisis, reports Bloomberg.
The Fed is trying to save the money of the depositors of already collapsed and still reeling banks. The creation of the Term Bank Financing Program was announced on 12 March. “Depositors will have access to all their money starting Monday, March 13,” the Treasury Department, the Fed and the Federal Deposit Insurance Corporation (FDIC) said in a joint statement.
“The use of the Fed’s term bank financing program is likely to be significant,” JPMorgan said in a note to clients. The largest banks are unlikely to take advantage of the program. At the same time, the maximum loan amount is about $ 2 trillion, which corresponds to the nominal amount of bonds owned by US banks that are not included in the top five largest, JPMorgan experts explain.
How will this help the crypto industry?
Former head of the BitMEX exchange and well-known cryptocurrency influencer Arthur Hayes thinksthat such a powerful injection of money will certainly provide a bull market for cryptocurrencies. Hayes even called the new liquidity flow “the most important financial event since the coronavirus”:
My take on the BTFP bailout drops tomorrow morning Asia time. It’s a bit long, but IMO this is the most important financial event since COVID. And if you trade this correctly, you are setting yourself up for a very profitable #crypto bull market.
— Arthur Hayes (@CryptoHayes) March 16, 2023
This is the most important financial event since COVID. And if you trade correctly, you are setting yourself up for a very lucrative cryptocurrency bull market.
“Get ready for a meteoric rally in risky assets. Money Printer Launched!” Hayes wrote three days ago.
You are ready?
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