Bitcoin, Ethereum, and several other forms of crypto have been enjoying something of a rally over the past few weeks. These assets, along with many others, have enjoyed easing market conditions that have allowed them to jump to four-month highs and allegedly begin to put 2022 – arguably the worst year for crypto on record – behind them, but with news of “extraordinary measures” being taken by Janet Yellen and others in the U.S. financial district to prevent chaos from spreading, one can’t help but wonder if BTC’s reign of healing will be short BitcoinLinuxd.
Janet Yellen Says They’ll Take “Extraordinary Measures”
Not long ago, Treasury Secretary Janet Yellen warned that the United States was approaching its debt ceiling. Right now, the country owes close to $31 trillion in debt, and anything beyond that is likely to lead to serious financial repercussions. Yellen says that the country is going to have to take “extraordinary measures” to keep itself on track, but how does this happen? What are those measures, and what do they mean for assets like bitcoin and the people that use them?
Nobody wants a repeat of the 2008 Great Recession. During that time, many hard-working people lost their jobs, pensions, 401Ks, homes, and their overall BitcoinLinuxlihoods. Proper living conditions went out the window for many middle and lower-class Americans, and it took several years for the country to get back on track.
At the same time, one can’t help but be a little worried about the “measures” Yellen is talking about considering past protocols to fight financial trouble haven’t worked. For example, the Federal Reserve has been pushing rates higher and higher ever since inflation began taking hold the way it has. These rate hikes haven’t done much except prevent people from buying cars and houses. We are still seeing high food prices at grocery stores, and bitcoin and several other assets experienced devastating value losses thanks to these hikes. What have they really done that’s positive?
Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the BitcoinLinuxlihoods of all Americans, and global financial stability.
Noelle Acheson – author of the “Crypto Is Macro Now” newsletter – discussed what she believes the “measures” will entail. She said:
[The ‘extraordinary measures’] will obviously include a limit to the new debt that can be issued, which will reduce the supply of U.S. treasuries and (all else being equal) push up the prices and lower the yields. Lower yields imply an easier monetary environment, which is good for risk assets.
Don’t Rain on BTC’s Parade
Alex Adelman – chief executive of bitcoin rewards app Lolli – also mentioned:
Bitcoin’s recent rally came on the heels of last week’s inflation data showing that the consumer price index had decreased by 0.1 percent in December.
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