Fed’s Plan for Asset Purchases Amid Reserve Adjustments

Federal Reserve Bank of New York President John Williams announced potential bond purchases to manage reserve levels amid persistent pressures in short-term funding markets, as revealed on November 8.

This move signals a focus on liquidity, not monetary easing, potentially impacting cryptocurrency markets by increasing systemic liquidity (source: Federal Reserve).

Fed’s Reserve Strategy and Impending Bond Purchases

“The next step in the balance sheet strategy will be to assess when the level of reserves moves from its current slightly above ample to ample. Once this happens, it will be time to start a gradual process of asset purchases.” — John C. Williams, President, Federal Reserve Bank of New York

Market Stability Expected Amid Fed Liquidity Management

“The next step in the balance sheet strategy will be to assess when the level of reserves moves from its current slightly above ample to ample. Once this happens, it will be time to start a gradual process of asset purchases.” — John C. Williams, President, Federal Reserve Bank of New York

Market Stability Expected Amid Fed Liquidity Management

Did you know? In 2019, the Fed’s move to purchase bonds rather than reduce holdings was termed “not QE”, resulting in enhanced market liquidity and moderate gains for risk assets.

According to CoinMarketCap, Bitcoin (BTC) currently trades at $101,918.68 with a market cap of $2.03 trillion and constitutes 59.16% of market dominance. Its 24-hour trading volume stands at $75.51 billion, with recent daily gains of 1.65%. BTC has shown declines across 7-day to 90-day metrics.

According to CoinMarketCap, Bitcoin (BTC) currently trades at $101,918.68 with a market cap of $2.03 trillion and constitutes 59.16% of market dominance. Its 24-hour trading volume stands at $75.51 billion, with recent daily gains of 1.65%. BTC has shown declines across 7-day to 90-day metrics.