{"id":402190,"date":"2019-10-24T13:00:44","date_gmt":"2019-10-24T13:00:44","guid":{"rendered":"https:\/\/uniquehot.com\/?p=402190"},"modified":"2019-10-24T12:24:59","modified_gmt":"2019-10-24T12:24:59","slug":"feds-repo-crisis-bullish-for-bitcoin-hints-vaneck-executive","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/feds-repo-crisis-bullish-for-bitcoin-hints-vaneck-executive\/","title":{"rendered":"Fed’s Repo Crisis Bullish for Bitcoin, Hints VanEck Executive"},"content":{"rendered":"
Bitcoin is going to benefit from the ongoing repo crisis<\/a> in the US banking system, hinted Gabor Gurbacs of VanEck, a New York-based investment management firm.<\/p>\n The Digital Asset Strategist, who oversaw the drafting and filing of VanEck’s Bitcoin ETF application to Securities and Exchange Commission (SEC)<\/a>, on Thursday indicated that Fed’s plans to inject more money into the lending market could generate more demand for Bitcoin.<\/p>\n Exemplifying with a ZeroHedge report, Gurbacks noted how increased liquidity was already pushing the benchmark S&P 500 index higher. The US equities surged dramatically during the Wednesday session, shortly after the Fed \u2013 suddenly \u2013 announced that it would raise the lending amount to the market from $75nbn to “at least” $120bn daily. The announcement caught market participants off-guard, with a repo trader saying that he did not “see a reason to upsize the overnight operation so substantially.<\/a>”<\/p>\n Gubar expressed that the money Fed would inject daily was more than the market capitalization of bitcoin, which currently sits near $135bn.<\/p>\n “Think about it for a moment,” he added cryptically.<\/p><\/blockquote>\n > The #Fed<\/a> to add *$120 billion* liquidity *per day* to repo markets. — Gabor Gurbacs (@gaborgurbacs) October 24, 2019<\/a><\/p><\/blockquote>\n\n
> That is a massive 60% increase in the overnight repo liquidity availability (from $75 billion to $120 billion).
> #Bitcoin<\/a>\u2019s market cap is $135 billion. Think about it for a moment.
> https:\/\/t.co\/PHxk5r4LLY<\/a><\/p>\n