The Federal Reserve (FED) secretly printed money! In May, it bought 43.6 billion USD in government bonds, will Bitcoin benefit from the quantitative easing?

The Fed quietly bought tens of billions of dollars in Treasuries in May as demand for U.S. bonds appeared to be waning, and analysts saw it as printing money in disguise. At this time, Bitcoin seems to have enjoyed the QE dividend and began to rebound. (Synopsis: Trump's second son confirms holding a large amount of bitcoin: my father also holds a lot, optimistic about BTC into digital gold) (Background supplement: Bitcoin strategic reserve is difficult to produce? Democrats are "circulating" Trump's new crypto deal) The US Federal Reserve (Fed) was recently found to have quietly executed tens of billions of dollars in Treasury bond purchases in early May when the market was relatively calm. The move was interpreted by some in the market as "secret QE, quantitative easing" to increase the money supply. The Fed's covert operations and market reaction According to MarketWatch, the Fed bought $43.6 billion in U.S. Treasuries in the week of May 8, which was not widely expected. This is in contrast to the Fed's ongoing balance sheet reduction (QT) policy since June 2022, which currently measures around $6.7 trillion. Source: Financial M Square As for why the Fed secretly began to buy US bonds again? Analysts found that the U.S. Treasury Department tried to auction $150 billion in bonds on May 9, only to sell $78 billion, a shortfall of $72 billion. In order to avoid increased volatility in the bond market, the Fed stepped in to close the gap. What is more worrying is that international credit rating agency Moody's announced on Friday that it downgraded its US credit rating from the highest level of "AAA" to "AA1", making the United States officially lose the 3A ratings of the three major credit rating agencies (Fitch, S&P have previously been downgraded, and Moody's is the newest one). Analysts warn that the current market is extremely fragile, and if there is no major economic bullish news that can boost safe-haven demand for US bonds, US Treasury yields may rise further due to the downgrade of the rating. (The chart below shows that this week's 10-year Treasury yield reached a nearly three-month high) Source: Financial M Square The decline in the purchasing power of the market for U.S. bonds reflects growing concerns about the ballooning debt and deficit in the United States, and although it may not be panic yet, it is clearly a potential warning sign. At the same time, it also increases the borrowing costs and pressure of the US government, which must be one of the last phenomena Trump wants to see. U.S. stocks, bitcoin benefit? In the context of the Fed's "secret QE", the global risk market also ushered in a rebound in May, especially bitcoin and other cryptocurrencies rose the most, in the context of the weakening of the attractiveness of the dollar, some analysts believe that the low-key and unexpected nature of the Fed's operation may further accelerate the rally of crypto assets. However, it should be noted that the exact motivation behind the current short-term boost and the long-term impact on the market are still unknown. In the complex and ever-changing global economic landscape, the market outlook is still very variable. Related reports The US "GENIUS" stablecoin regulatory law failed! Democratic Party: First ban the Trump family from profiting through cryptocurrencies, bitcoin soared 104,000" U.S.-UK TARIFF AGREEMENT + TRUMP interpreted goodwill to China, the four major indexes of U.S. stocks rose together Bitcoin broke the $100,000 mark! Trump choked Fed chairman "did not cut interest rates" 〈Fed secretly printed money! Bought $43.6 billion in Treasury bonds in May, bitcoin tasted quantitative easing dividends? This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".