A couple trillion more reasons to own Bitcoin...
The next coronavirus relief bill is expected to worth trillion(s), with an "s"...
If you didn't have enough reasons to own bitcoin already, you are about to get a couple trillion more.
Late Thursday, the Speaker of the House Nancy Pelosi, said the next coronavirus bill will be a very strong one and it will need to be in the trillions.
The democratic lead house already passed a $3 trillion dollar coronavirus stimulus bill several weeks back but it was DOA in the republican lead Senate.
The Senate has reportedly come to terms on their own relief bill, which is ONLY worth $1 trillion.
Pelosi, house democrats, and even some republicans think that will not be enough however...
“We feel very confident that we’ll have a strong bill. $1 trillion doesn’t do it for us, but we can negotiate from there.”
(Source: https://www.reuters.com/article/us-health-coronavirus-usa-pelosi-idUSKBN24A2KE)
And the printing presses go Brrrrrrrrr.....
If you didn't need any more reasons to own bitcoin, you are about to get at least a trillion more.
Most likely a couple trillion more.
The interesting thing is that as of late, the FED's balance sheet had actually begun to contract...
Check it out:
This is the first time their balance sheet has shrunk since the pandemic started, and it's the largest balance sheet contraction in 11 years.
Yikes!
That may sound scary for bitcoin and stocks that were hoping to ride the wave of central bank expanding balance sheets, but it's really not that bad...
The contraction is due to some of the emergency relief efforts being rolled back, which could be argued as a slightly bullish thing.
Specifically, dollar swap lines which are reciprocal agreements between central banks to keep currency available for their commercial banks have fallen by over $40 billion.
The Fed opened dollar swap lines with other central banks after the coronavirus crash in March caused a dollar shortage in the international markets.
The Goldilocks scenario...
This contraction means things are less crisis-ish than they were back then.
But make no mistake the balance sheet will continue to expand in the coming weeks and months as the next round of stimulus eventually gets agreed upon and passed.
In the meantime we might see risk assets take a bit of a breather, stocks are haven't a heck of a time dipping at all.
Stay informed my friends.
Image Source:
https://www.reuters.com/article/us-health-coronavirus-usa-pelosi-idUSKBN24A2KE
-Doc