Happy Sunday everyone☀️

The Fed purchased $43.6 billion in Treasury bonds last week without making any press release or creating major news.

On May 8, it acquired $8.8 billion worth of 30-year long-term bonds in a single day.

Earlier in the week, it also made a purchase of $34.8 billion. The Fed has actually been quietly pumping money into the market.

So technically, we can call this covert monetary expansion. Why is this important for those of us trading in crypto and stock markets?

Because the Fed usually tightens by selling bonds. What it is doing now is the exact opposite, providing liquidity again by buying bonds from the system instead of withdrawing money.

Generally, such quiet moves can herald significant fluctuations. These types of monetary expansions raise questions like: Is the liquidity issue getting worse? Is there stress in the banking system?

Is there a lack of demand in the borrowing markets? When these questions start being asked, the instruments that will benefit the most are Gold, Bitcoin, and stock markets.