Simply Bitcoin BREAKING: The Money Printer Just Went Into OVERDRIVE!! | EP 1396
Dec 11, 2025
In a surprising twist from the recent FOMC meeting, the Fed's strategy shifts towards increased liquidity, igniting bullish sentiments for Bitcoin. Experts debate the implications of balance sheet expansion, likening it to quantitative easing. Market reactions favor hard assets, while institutional demand is seen as a potential catalyst for future price surges. Discussions also touch on the influence of political dynamics and the evolving role of banks in managing Bitcoin flows. Insights into client strategies reveal varied approaches amidst a shifting landscape.
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Fed Balance Sheet Expansion Begins
- The Fed announced it will buy $40B of Treasury bills and expand reserve holdings, effectively restarting balance-sheet expansion.
- Optimist Fields and Lynn Alden treat this as money printing that increases liquidity and is bullish for hard assets like Bitcoin.
QE By Another Name Is Still QE
- Lynn Alden and others argue the Fed's operations are QE in effect even if not labeled QE.
- The semantic difference doesn't change that this expands the money supply and injects liquidity into markets.
Fed Pivot Could Boost Bitcoin Again
- Bitcoin previously rose from $16K to $126K while the Fed shrank its balance sheet.
- Now that the Fed pivots to expansion, historical dynamics imply stronger bullish tailwinds for Bitcoin.