Gold and Bitcoin Rise Up After Fed’s Unlimited Cash Announcement

Bitcoin (BTC) and gold have been on the rise after the US Central Bank’s (Fed) support announcement. Bitcoin, which passed $ 6,000 on Monday, continued to remain at $ 6,500 later. According to CoinMarketCap data, the leading cryptocurrency is currently trading at $ 6 thousand 601. Along with BTC, there was also a recovery in gold.

Fed: We Have Infinite Money

Gold gained 1.35 percent during the day and went up to $ 1,572 level.

Goldman Sachs stated that for this rise under him, he was similar to the behavior during the 2008 financial crisis. At that time, as it is now, the Fed removed the barriers to dollar liquidity, causing the precious metal to rise. As several sources have reported, the Fed will now make a massive buyback of $ 2.5 billion worth of $ 125 billion a month each day. Aiming to support the US economy, the program will include the new dollar injection, which has become the largest money-making experiment in US history. Treasury Secretary Steven Mnuchin described the liquidity offered to businesses and banks as “almost limitless.”

In an interview with CBS on Sunday, Minneapolis Federal Reserve Bank President Neel Kashkari went even further and said the following:

“There is an infinite amount of cash in the Fed. We will do whatever we need to make sure there is enough money in the banking system. “

Failing

This news led to the encouragement of Bitcoin and gold investors. PlanB, the creator of the Bitcoin stock flow model, criticized the Fed’s actions with expressions that the central bank is turning into “full Zimbabwe”.