“The Federal Reserve decided it had to act quickly and severely to cut rates on Sunday, slashing the target fed fund rates to between 0.0 and 0.25 percent. The full percentage point cut was four times more than its usual move. The last time rates were cut to this level was Dec. 2008, where it remained for seven years.
Not only did the Fed cut rates, it also decided to start buying $500 billion in U.S. Treasury bonds and $200 billion mortgage-backed securities (MBS). Effectively, this is “QE4,” the fourth major round of quantitative easing by the American central bank since the global financial crisis a little more than a decade ago. This will bring total assets on the Federal Reserves balance up to a record $5 trillion.
Over the past week, the Fed also announced it was going to do a total of $1.5 trillion in repurchase agreements (repos) lasting up to three months to make short-term money available to banks to meet reserve requirements.”
“The Fed may have a very big problem on its hands.
After firing the biggest emergency “shock and awe” bazooka in Fed history, one which was meant to restore not just partial but full normalcy to asset and funding markets, Emini futures are not only not higher, but tumbling by the -5% limit down at the start of trading; Dow futures down 1,000 and also limit down; the VIX surging 14%.
It now appears that the Fed’s emergency rate cut to 0% coupled with a $700BN QE is seen as note enough by a market which is now openly freaking out that the Fed is out of ammo.
In short, with the ES plunging limit down, this has been an absolutely catastrophic response to the Fed’s bazooka; expect negative interest rates across the curve momentarily.“
“Did equity margin calls spark the Bitcoin sell-off? If it’s true that institutional investors just withdrew from Bitcoin, then this bounce from $3,850 might signify that we have not only bottomed, but we might be about to decouple from any possible correlation with the stock market.
- True holders are unfazed
- Newcomers can now enter at lower prices
- Future selloffs won’t be as extreme”
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“Proceeds from the campaign will reportedly be used to set up a second-level advanced medical post for pre-triage of COVID-19 cases in the country. The remaining funds will be used to cover the fees of the medical staff.
We believe that an innovative fundraising tool like Bitcoin can help us find the necessary economic resources, that are very difficult to obtain in this historical moment.”
“The judge is considering whether Ripple may have violated California’s Unfair Competition Law (UCL) — which prohibits unlawful, unfair, or fraudulent business practices.
The court asserted that transactions involving cryptocurrencies that are not deemed to be securities may be subject to UDAAP laws — paving the way for further putative action to be taken against other crypto projects that claim exemption from federal securities laws, particularly in California.
The application of UDAAP laws to crypto companies could result in projects coming under fire for failing to closely adhere to all customer agreements presented to users.“