When the US Federal Reserve started its program of repo agreements to help out banks in trouble, many foretold the beginning of another financial crisis. As more dollars get printed and injected into financial markets, its depreciation increases and further pressure is put on the global economy. This should be good for Bitcoin but the current price action says otherwise.<\/p>\n
The notion of another 2008 equaling global financial crisis<\/a> should send savvy investors scrambling for safe haven assets. Gold markets have been boosted this year and Bitcoin is still up 75% since the beginning of 2019.<\/p>\n The latest price collapse of BTC though has severely dented the perception that demand will increase in times of economic adversity. Who is selling Bitcoin and why should be the question of the moment.<\/p>\n It has often been said that quantitative easing is \u2018rocket fuel\u2019 for Bitcoin<\/a>, yet why has it dumped almost 20% in a week? Economist Alex Kr\u00fcger has been posing this exact question in his latest round of tweets.<\/p>\n \u201cRemember how the Fed “printing money” was supposed to make bitcoin prices explode higher? $BTC is down 30% since the Fed started expanding its balance sheet in August.\u201d<\/p><\/blockquote>\n Remember how the Fed "printing money" was supposed to make bitcoin prices explode higher? <\/p>\n Quantitative easing is rocket fuel!<\/p>\n Fantastic narrative.$BTC<\/a> is down 30% since the Fed started expanding its balance sheet in August. Big facts. pic.twitter.com\/byhWrdslGG<\/a><\/p>\n — Alex Kr\u00fcger (@krugermacro) November 24, 2019<\/a><\/p><\/blockquote>\n\n