Since Covid, the bitcoin price is almost exactly correlated with Fed liquidity. \ stacker news ~bitcoin

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Formula for Fed liquidity on Tradingview: (FRED:WALCL-(FRED RRPONTSYD+FRED WTREGEN))/1000000000

This blue line represents (Fed balance sheet) - (Reverse repurchase agreements + Treasury general account).

Also, notice the divergence now! Liquidity coming in (bullish) but BTC price getting hammered (FTX, contagion).

100 sats \ 2 replies \ @GhostofTruth 21 Nov 2022

Nearly everything, like equities and especially real estate, has become a derivative of the Fed's balance sheet. I still hope Jay Powell is trying to kill the Fed-Put to re-establish something that could be called a ''free'' market. This would be the signpost for the US not to fall deeper into the commie trap.

177 sats \ 1 reply \ @rothbardllc OP 21 Nov 2022

I understand the sentiment but we have to be careful what we wish for.

That is true armageddon stuff if the Fed doesn't open up the firehose on liquidity right away. They are 4+ months late as it is.

I'm watching the reverse repo data closely to see them pivot, it won't come on the headline interest rates, it's going to be behind the scenes with reverse repos.

100 sats \ 0 replies \ @GhostofTruth 21 Nov 2022

Well, I just do not see any scenario in which the Fed could heal this bubble-financialized economy. Take the deflationary shock: it will crash the economy and bring extreme volatility on the streets if not more. Let the money printer run hot and You kill peoples existence with more inflation just to bring the same vola to real life. They trapped us with their stupid keynsianism and buying votes by spending purchasing power from the future.