- U.S Treasury Department plans to borrow almost $3 trillion to continue COVID-19 economic relief.
- After a brief crash in March, crypto markets have been surging amid COVID-19
Despite issuing trillions in COVID-19 economic relief, the U.S. Treasury has announced plans to borrow an additional $3 trillion (NPR). With the US government borrowing twice as much in 2020 Q1 as it did in all of 2019, many raise concerns over long-term economic sustainability.
Furthermore, the Treasury Department plans to borrow another $677 billion to fund relief in July, August, and September. This comes as Chair of the U.S. Federal Reserve, Jerome Powell, says the “US won’t run out of money.”
Federal Reserve Balance Sheet Continues to Grow
As the U.S Treasury plans to borrow $3 trillion to fund COVID-19 relief, the US Federal Reserve balance sheet continues to grow. From just January to April, the balance sheet has surged from $4 trillion to over $6.5 trillion. Furthermore, it’s projected that the Federal Reserve balance sheet will surge past $10 trillion by the end of 2020.
Furthermore, the global currency supply is projected to increase by 50% in 2020. With the global currency supply rising exponentially, concerns over inflation arise. With hyperinflation a boon for cryptocurrencies, the crypto market has seen a surge in interest in Q1 2020.
Over the last week, Bitcoin has surged 21%, from $7,600 to $9,250. While this surge can be attributed to the upcoming Bitcoin halving, hyperinflation has cast the spotlight on limited inflation assets like Bitcoin. With a limited supply, Bitcoin acts as a hedge against hyperinflation. Furthermore, after the Bitcoin halving in less than a week, Bitcoin’s inflation rate will drop to 1.8%, far less than half the global average.
Disclaimer: Content displayed on thecryptoassociate.com is not investment advice. Investors should do their own research before investing in digital assets or anything displayed on this site. The Crypto Associate does not recommend trading any sort of investment in cryptocurrencies and digital assets. The Crypto Associate is not responsible for any losses incurred due to the buying or selling of cryptocurrencies displayed on this site. All content is for informational purposes only. The Crypto Associate does not endorse, affiliate or represent any third-party links including advertisements. The Crypto Associate participates in affiliate marketing. Read the full disclaimer