. As inflation starts to decrease, markets have generally climbed in anticipation of a possible change in the Federal Reserve's policy. Even though the Federal Reserve has not yet officially announced any plans to loosen financial conditions, investors may be anticipating such a move, as they have observed that increasing the money supply leads to an increase in the value of financial assets in the past.
The relationship between the Fed's actions on liquidity and the market's movements can be directly correlated. Bitcoin even sometimes behaving as an indicator for changes in liquidity. This pattern is noticeable during May and November 2021, which turned out to be local tops during Fed’s positive guidance.
The increased liquidity in the market has started to impact the supply available of stablecoins in the ecosystem. This growth represents a positive sign for the entire crypto ecosystem.The growth of stablecoin supply can be beneficial for the crypto ecosystem in a few ways: it can increase liquidity, make trading more accessible, foment greater adoption, improve market stability and increase the efficiency of the ecosystem overall.
The relevance of monetary policy and macroeconomic decisions has continued to play an important role in crypto assets price performance. Jerome Powell aims to keep taking the necessary measures in order to bring inflation under control. These monetary policy actions affect the crypto and capital markets through their impact on liquidity.
This article contains links to third-party websites or other content for information purposes only . The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site.
intotheblock Appreciate the article. CMC cryptomarket
intotheblock stablecoins showing green growth 📈 YellowArmy
intotheblock A positive sign for all of us I guess. cryptotraders HODArmy BNB blockchain
intotheblock This is great news! It’s encouraging to see that stablecoins are beginning to show healthy demand, which could benefit the overall crypto economy. I'm interested in learning
intotheblock 🧐
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CoinDesk - 🏆 291. / 63 Read more »
Source: BTCTN - 🏆 531. / 51 Read more »