Fed's $17 Billion Purchase Not New Quantitative Easing

As Bitcoin (BTC) seeks direction around $65,000, the Federal Reserve's plan to purchase $17 billion has been confirmed as a regular reinvestment schedule rather than new quantitative easing. The New York Fed will conduct $17 billion in reinvestment purchases from August 14 to September 14, and there are no plans for reserve management purchases. In the previous period, there were $17.6 billion in reinvestment purchases and $10 billion in reserve management purchases. This purchase amount comes from the Fed's open market operations schedule, where reinvestment purchases involve reinvesting the principal of maturing assets back into government bonds. The Fed maintained its target range for the federal funds rate at 3.50% to 3.75% as of July 29, setting the interest rate on reserve balances at 3.65%. According to the update on the 17th, BTC has recovered its downward trend line; however, the outflow of stablecoin funds and the preference for gold still exist, indicating that liquidity alone may not be sufficient. BTC prices vary across exchanges, with $65,000 being close to a psychological price level. According to DeFiLlama, the total market capitalization of stablecoins is $300.792 billion, with a 30-day change rate of -0.61%. The net inflow of Bitcoin spot ETFs recorded the lowest monthly net inflow of $205 million in July. The key issue is whether the Fed's liquidity is strong enough to actually propagate into BTC.

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