![Stealth QE: Feds balance sheet grows $300B, Bitcoin breaks $26,000](https://cryptoslate.com/wp-content/themes/cryptoslate-2020/imgresize/timthumb.php?src=https://cryptoslate.com/wp-content/uploads/2023/01/bitcoin-Insights-1.jpg&w=70&h=37&q=75)
Quick Take
- One week from the fallout of SVB, with “higher for longer” calls for interest rates to tame four-decade-high inflation, the Fed has capitulated.
- The fed balance sheet has expanded by over $300 billion this week.
- In layman’s terms, BTFP allows institutions to swap devalued assets for full-value cash (money coming from nowhere).
- In addition, the fed’s discount window went parabolic to $148 billion this week, the highest level since 2008.
- Again in layman’s terms, distressed banks calling for Fed liquidity.
- The Fed balance sheet has jumped to $8.69 trillion โ wiping out half the quantitative tightening they have been doing for the past year.
- As I said yesterday, Bitcoin sniffs out any liquidity in the market. As a result, Bitcoin is above $26,000.
Balance Sheet Growth
- Approximately +$148.3 billion โ net discount window borrowing.
- Approximately, +$11.9 billion โ the new Bank Term Funding Program
Subtotal: $160.2 billion
- Approximately +$142.8 billion โ borrowing for banks seized by FDIC Total:
This totals = $303 billion
![Total assets Fed Balance Sheet: (Source: FRED)](https://cryptoslate.com/wp-content/uploads/2023/03/ba2.png)
![Fed Discount Window: (Source: Joe Consorti)](https://cryptoslate.com/wp-content/uploads/2023/03/FDW.png)