At the weekend, Bitcoin updated the historical maximum, exceeding a mark of $ 28,000. Many analysts have tied the climbing cryptocurrency in 2020 with the actions of the Fed and the US government, and the Forbes magazine Chairman of the Fed Jerio Powell assigned the title "Man of the Year in Crypto Industry". In this award there is a share of satire, since the Fed did not provide the patronage of the cryptocurrency market, and all its actions were aimed at combating economic effects of the epidemic.
In response to the fall in business activity and the growth rates of GDP, the regulator dropped a key rate to a level of 0-0.25%, reduced the partial reservation rate for banks and began pumping markets by liquidity through the buying of treasury and mortgage bonds. The Balance of the Fed "Pelt" for the year by 78%, since the regulator released over $ 3 trillion to the market.
At this stimulation of the American economy did not end. On December 27, Donald Trump endorsed budget financing with a total of $ 2.3 trillion, which includes an "antique plan" of $ 900 billion. Despite the dissatisfaction with a small amount of benefits, Americans will receive $ 600 with one-time payments, and a weekly unemployment allowance will increase by $ 300.
The preservation of spending at a high level and the fall in real GDP led to an increase in US public debt to $ 27.5 trillion, and his attitude to GDP is a little inferior to the historical level and is now in the region of 115% (according to preliminary data).
But this does not stop the Democrats, who, after the inauguration of Joe Bayiden, plan to increase the amount of payments to American families. Permanent infusion of new money in the economy led to the fact that a quarter of all US dollars were printed in 2020.
It was this circumstance that the increase in the interest of institutional investors to cryptoculum, which possesses a limited issue of 21 million BTC, and every four years there is a Halving (reducing reward for mining twice) to maintain inflation at a consistently low level.
The actions of the Fed and the US government had a beneficial effect on the cryptocurrency market: 2020 allowed a new look at the Bitcoin decentralized character, protected from the interests of individual individuals or financial regulators. In case of continuing the policy of financial stimulation next year we will see new records of climbing cryptocurrency market.
Analytical group Stormgain.