The US Federal Reserve is still unintentionally advertising Bitcoin, as President Jerome Powell argues for more money to be printed.
In a November 6 tweet, Tyler Winklevoss, co-founder of the cryptocurrency exchange Gemini, She said that Powell’s last speech this week was “code to buy Bitcoin”.
Powell: Congress should accept more stimuli
Powell was speaking at a press conference, which followed the Fed’s November 5 meeting on the state of the economy and future measures.
As before, he reiterated that the central bank has not exhausted its range of tools to support the economy. So far these have included heavy stock market interventions, financial stimulus measures and direct payments to Americans.
“I would just like to say that I think we will have a stronger recovery if we can only get a little more fiscal support, when it is appropriate … the size that Congress deems appropriate,” he said. quoted by Reuters.
Bitcoin advocates have long warned about the long-term impact of short-term meddling in the economy by central banks, represented by the huge increase in public debt recorded in the US and elsewhere in 2020.
The Fed’s balance sheet settled at $ 7.14 trillion on Friday, close to an all-time high. The US national debt has exceeded $ 27.2 trillion, a figure never seen before in history.
“Virtually no BTC left for sale”
In what some have described this week as a clear demonstration of simple supply and demand at work, Bitcoin – with its fixed supply – continued to rise as Powell delivered his speech.
The largest cryptocurrency has gained more than 15% since the start of the week, reaching levels not seen since late 2017.
According to quantum analyst PlanB and others, this is to be expected, as six months after halving the block subsidy halved the supply of new Bitcoins, investors have recovered the slack.
These included existing business buyers who increased their needs, including the Square payment gateway, which saw 80% of Q3 revenue come from Bitcoin.
“There is practically no more BTC for sale,” the popular Girevik Twitter account summary, noting support from large buyers on exchanges at levels below $ 13,000. Sellers have yet to impact the market, even at nearly $ 16,000.