What will QT(Quantitative Teasing) affect the crypto market?

in qe •  2 years ago  (edited)

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FRB(Federal Reserve Bank) has been the role of a navigator for a massive economy through the control of USD in circulation. The FRB has increased USD in circulation during economic crises and over time.

There have been 2 economic crises during the last 20 years. In 2008, the FRB increased USD in circulation to overcome the Subprime Mortgage crisis. In 2020, it has been an economic crisis due to COVID-19. Also this time, the FRB tried to overcome it through the QE. You can know those through the red square which is marked on the graph.

When the article which describes that the FRB will start QE in Mar 2020 gave us the hint that the overall asset value can skyrocket. Since the total amount of assets which are real estate, stocks, cryptos, etc was not much changed, the meaning of USD in increasing circulation must be concluded as asset value increasing.

There has not been a specific way to make money. There have been ways in NEWS. NEWS already gave us hints. If you read about QE in Mar, 2020 and just read not carefully, you are not eligible to invest assets.


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FOXBUSINESS: Fed starts shrinking $8.9T balance sheet

The FRB already started QT. The amount of QT is around $520 billion. How many decreasing ratio of the FRB total assets is?

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The current FRB total assets is around $8.915 trillion, which means the decreasing ratio of the FRB total asset is 5.82%.

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So, it doesn't mean to go back before the COVID-19 with respect to the USD in circulation. It means to go back to the level Sep, 2021. In 2008, how many were the FRB total assets decreased?

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They decreased 19% of the amount of total assets. At that time, how was the stock market affected in America?

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NASDAQ collapsed. But, after ending of QT, the FRB started increasing the USD in circulation very slowly. In this period, how was the NASDAQ market?

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Before COVID 19, NASDAQ index had been increased 10 times for 10 years. From these aspects, we can expect that how the crypto market will be in terms of long-term investment.

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