New York Fed buys 3.3 billion euros in government bonds, no new money for Bitcoin

The New York Fed purchased approximately 3.3 billion euros in short-term U.S. government bonds on October 22. This purchase replaces older investments that are being redeemed and is not a new stimulus package for the economy. While more money in the financial market could be favorable for crypto, this purchase does not prove that extra money is flowing into Bitcoin. The Fed is primarily replacing a maturing investment, similar to savings being reinvested without additional capital. From October 15 to November 13, the central bank plans to reinvest a total of approximately 13 billion euros, without additional purchases to increase the amount of money at the Fed. Bitcoin investors are closely monitoring the Fed, but this specific transaction is unlikely to drive up the price of Bitcoin, as the money shifting between the Fed, banks, and sellers is offset by repayments on older investments. Fed Vice Chair Philip Jefferson has previously stated that Fed purchases are not additional economic support policies, and this purchase is even more limited.

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