Fed’s Quiet Money Injection Sparks Market Turmoil: How Will Bitcoin Respond?

The financial world is experiencing unusual turbulence, with a surge in cash flow from the Fed seemingly fueling Bitcoin’s recent $500 billion crash and escalating US-China tensions. While the Fed hasn’t formally changed its policy stance, market signals suggest otherwise. A dramatic drop in its Reverse Repo Facility (RRP) points to a hidden ‘quantitative easing’ strategy, injecting liquidity that may be unsustainable long-term. This dynamic is creating a precarious market environment where Bitcoin and other crypto assets are being heavily impacted.