While Bitcoin is an asset independent of central banks, of banks, and of Wall Street, the cryptocurrency\u2019s strength and underlying value proposition have become increasingly dependent on events in the traditional financial world as this fledgling industry has grown.<\/p>\n
One such pro-Bitcoin<\/a> event, or trend rather, is the Federal Reserve\u2019s decision to pump billions of dollars worth of liquidity into the repo market. Some say that this validates the idea of decentralized cryptocurrency entirely.<\/p>\n According to Daniel Lacalle<\/a>, an economist based in London, the Federal Reserve just set a record. The record? $235 billion worth of repo market interventions on December 25th, nearly double the previous record of $133 billion set in July 2008, in the midst of the Great Recession of 2008.<\/p>\n New record: USD 235 billion in repo intervention<\/p>\n The highest value in 2008 was USD 133 billion in July, 18th 2008. Two months before Lehman went bust, but repo market as of today is around 40% SMALLER than in 2008. <\/p>\n (thanks Dan Miraglia, QAM) pic.twitter.com\/x3Fc1W5kJI<\/a><\/p>\n — Daniel Lacalle (@dlacalle_IA) December 27, 2019<\/a><\/p><\/blockquote>\nFederal Reserve Pumps Billions Into Repo Market<\/strong><\/h2>\n
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