- Wilshire Phoenix CEO said the latest round of capital injection is simply not enough funding for the market.
- Herman stated that the Federal Reserve’s current market involvement was until September 2019.
- He believes that the Fed system was trying to implant confidence in the system, but they need to stop musing like scholars and work on something meaningful.
The CEO of Wilshire Phoenix, Bill Herrmann stated that if the border market continues to fall, the same scenario will be faced by the market player Bitcoin. One of the major causes of this fall is the injection of $168 billion by the Federal Reserve in the financial market over the past few years.
Herman said the latest round of capital injection is simply not enough funding for the market. Though it is insane, it will take $700 billion to stabilize the market.
What’s Happening in the market?
Due to the scary atmosphere of coronavirus and Dubai oil trade wars, the traditional market has dropped.
On March 12, the Dow Industrial Average (DJI) toppled 10% after facing several good days. Stated by a news report, it was concluded as the most terrible day for the U.S. markets since the Black Monday crash of 1987.
On the same day, Bitcoin met with a similar fate of falling from $6000 to $3,850. To overcome this situation, the U.S. Federal Reserve boosted $168 billion of cash into the financial system on March 10.
This amount is equivalent to 82% more than all the money invested in Bitcoin, holding a market capitalization of approximately $92 billion.
Wilshire Phoenix CEO on Fed’s Injection
Herman stated that the Federal Reserve’s current market involvement was until September 2019. However, last September, the Federal Reserve’s resumed repo operations thereupon the financial markets issues generated a substantial loss of control over their target interest rate.
Hermann notified that Fed’s latest capital acts as a small contribution in the grand scheme of things. He believes that the Fed system was trying to implant confidence in the system, but they need to stop musing like scholars and work on something meaningful.
Summing up with the thoughts, the CEO said that if the Federal’s recent multi-billion-dollar scheme is a comparatively small sum, then Bitcoin is still a very tiny asset in the market, nevertheless being the top market player in the crypto industry.