As the US Federal Reserve’s Bank Term Funding Program (BTFP) approaches its conclusion on March 11, 2024, the Bitcoin and crypto market stands at a critical juncture. Instituted in March 2023 in the aftermath of the sudden collapses of Signature Bank and Silicon Valley Bank, the largest since the 2008 financial crisis, the BTFP has been a lifeline for US banks, offering loans against high-quality collateral to ensure liquidity in turbulent times. The BTFP’s Closure And Its Implications For Bitcoin The BTFP’s conclusion could send ripples through the financial sector, affecting banks’ liquidity and possibly leading to tighter lending practices. Crypto analyst Furkan Yildirim recently detailed on X, “With the BTFP’s end, banks may face liquidity constraints impacting their operations and profit margins. This could slow down economic growth due to reduced lending.” However, he added that “the Fed might counter this by adopting a more lenient monetary policy, which could stabilize asset prices and prove beneficial for Bitcoin and the broader market.” Arthur Hayes, the visionary behind BitMEX, provided a similar opinion in one of his latest essa ..
Support the originator by clicking the read the rest link below.
