Fed balance sheet adds $393B in two weeks — Will this send Bitcoin price to $40K?

The Federal Reserve has been discussing a significant increase in its balance sheet for some time, and this has been confirmed. In the two weeks ended April 1st, the Fed's liabilities grew from $3.6 trillion to $3.99 trillion—a $393 billion surge. This has led some to ask whether this increased liquidity could push the price of Bitcoin past the $40K mark.

The answer is that it could, and it's likely to depend on how the Federal Reserve's balance sheet expansion plays out. If more regional banks fail and the Fed is forced to add more liabilities to its balance sheet, then it could lead to an upside scenario for Bitcoin.

On the other hand, it's important to remember that the Fed's balance sheet expansion is not necessarily a good sign for the currency. The increased liquidity is likely to lead to increased inflation, which can hurt Bitcoin's long-term prospects. Nonetheless, it's worth keeping an eye on the Fed's balance sheet, as it could have a direct impact on the price of Bitcoin.

In any case, the Federal Reserve's balance sheet expansion could create an interesting situation for Bitcoin. As the monetary policy debate continues, it will be interesting to see if the Fed's balance sheet expansion is enough to push the price of Bitcoin over the $40K mark.

Categories: Federal Reserve