Bitcoin Reverses Losses After Fed Makes Unprecedented Move

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Bitcoin (BTC), major altcoins reversed losses today after the U.S. Federal Reserve (Fed) announced unprecedented measures to support the economy. (Updated at 13:47 UTC: updated throughout the entire text)

At pixel time (13:33 UTC), BTC trades at c. USD 6,283, and is up 3% in a day. Earlier on Monday, it was below USD 5,900 before rallying as high as to USD 6,535. Ethereum (ETH) is up less than 1%, to USD 131. Other coins from the top 10 are up around 1%-2% today.

The move by the Fed on Monday marks a major shift from earlier asset purchase arrangement such as the much-discussed Quantitative Easing (QE) program, which always had an upper limit associated with it. This time, however, assets will be purchased in an unlimited quantity, and will not stop until the Fed determines that it has achieved its objectives.

“We are now in [quantitive easing] infinity, again,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in a note, as reported by CNBC.

Most traditional assets, including stocks, precious metals, and oil all traded higher after the Fed pledged asset purchases with no limit to support markets. The stock market, in particular, reacted positively to the news, reversing earlier sharp losses in S&P 500 futures trading, which had once again traded “limit down” overnight.

Bitcoin jumped soon after the news was announced:

Bitcoin Reverses Losses After Fed Makes Unprecedented Move 102
1-hour chart of BTC/USD. Source: www.tradingview.com

The same was also the case for the broad stock index S&P 500:

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1-hour chart of the S&P 500 stock index. Source: www.tradingview.com

In addition to the asset purchase plan, the Fed also announced a new lending program worth USD 300 billion for non-financial businesses, although specific details are still scarce.

All of the new moves from the Fed comes on top of earlier measures announced last week, including the re-introduction of QE, direct payments to households often referred to as “helicopter money,” and a new credit facility in the…

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