Wall Street Braces For $6.6 Trillion Fed Shift Amid Bitcoin Price Surge

Benzinga

Wall Street expects the Fed to end its $6.6T balance sheet reduction, boosting liquidity and risk assets like Bitcoin. Analysts see renewed money printing as a catalyst that could drive Bitcoin toward $1 million.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Wall Street is preparing for the Federal Reserve to halt its $6.6 trillion balance sheet reduction,

00:08a move expected to inject liquidity into markets and bolster risk assets such as Bitcoin,

00:13according to Forbes. Bitcoin has rebounded nearly 10% to above $111,000 following last

00:19week's flash crash. The Federal Reserve's 2022 quantitative tightening program reduced its

00:25balance sheet from $9 trillion to $6.6 trillion, tightening liquidity and pressuring risk assets

00:30like Bitcoin. JP Morgan and Bank of America expect the Fed to end its $6.6 trillion balance sheet

00:37reduction this month, a move likely to boost risk assets like Bitcoin by increasing market liquidity.

00:43Arthur Hayes, BitMEX co-founder, said renewed money printing could drive Bitcoin toward $1 million

00:47as investors seek hard assets like gold and crypto to hedge against inflation and dollar depreciation.

00:53For all things money, visit Benzinga.com.

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