- Once more, the leading cryptocurrency has recovered above the $6000 key resistance level.
- This occurred after the United States Federal reserve revealed that it is planning to further increase liquidity in the market in an attempt to soften the merciless attack that the coronavirus has had on the US economy.
Once more, the leading cryptocurrency has recovered above the $6000 key resistance level. This occurred after the United States Federal reserve revealed that it is planning to further increase liquidity in the market in an attempt to soften the merciless attack that the coronavirus has had on the US economy.
The reserve has revealed that it will be purchasing assets in the amounts that are needed. This is in an attempt to ensure that the markets function well during the pandemic of the coronavirus.
Over the weekend, the coronavirus stimulus bill failed to pass in the Senate due to a lack of votes. Following this, many investors in the crypto industry expected that the correction in the markets would deepen even further. But despite this, just hours before the United States stock market opened, the federal reserve announced that it will be buying an unlimited amount of Treasury bonds and mortgage-backed securities.
The reserve have also said:
“While great uncertainty remains, it has become clear that our economy will face severe disruptions. Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.”
On top of this, the federal reserve will also buy corporate bonds in both primary and secondary markets. This will include exchange traded funds too. The central bank for the United States is going to reveal a Main Street lending program over the coming months. This will help facilitate easy lending to small companies.
Furthermore, the reserve is also planning to launch its own new lending program which will be worth $300 billion. The idea for the new program is to support the flow of credit to employees, consumers and businesses that will be affected by the economic turmoil due to the coronavirus.