The world is facing a financial crisis as markets continue to crash. World governments led by the U.S are using every financial tool at their disposal to try and mitigate the downfall. Through the FED, the U.S is attempting to get a handle on the markets by printing more money.
In the last few hours, the New York FED has announced changes to the amount offered in daily overnight repos. The FED is set to increase the amount from $100B to $150B starting from 9th to the 12th when this amount will be reviewed again. It also announced an increase in the 2-week term repos. This will move from at least $20B to at least $45B starting March 10 to 12, 2020.
The FED is attempting to stimulate the economy by printing more money. This, the crypto community has continued to point out is a fundamental flaw in the financial system.
As many have been pointing out in response to the tweet, its time to use the cheaply printed money to “acquire more Bitcoin” and restore value.
The same has been reiterated by KimDotcom who has warned that the current financial crash will be as bad as the Great Depression. He has advised investors to sell stocks and fiat currencies and buy Bitcoin and gold.
Bitcoin Fails To Protect Investors
At the start of a new week, a majority of markets have started off in the negative. As investors cash out with the growing concerns over the Coronavirus, many expected this cash to make it to Bitcoin. Surprisingly, little of that money has made it to the crypto market.
In response, Bitcoin and other cryptocurrencies are in deep red. Bitcoin at the time of writing this has lost nearly 10% and dropped below $8,000. Wiping out much of the year’s gains.
Bitcoin continues to falter as a safe haven. But as KimDotcom notes, the worst is yet to come. Bitcoin will rise to the occasion and fulfill its purpose soon.