The bear-market of 2022 was caused also by the Fed, hurting the crypto sector.
Although the bursting of the 2021 bubble would have started a bear-market anyway, the Fed drained a lot of capital from financial markets, exacerbating the problem.
Moreover, the 2021 bubble had been created by the Fed, injecting more liquidity into the financial markets than it had ever injected before in its entire history.
But this time things seem to have changed, for the better, although some risk is still there.
Repos on the decline
One of the dynamics by which the Fed unintentionally drained liquidity from the financial markets are the so-called Overnight Reverse Repurchase Agreements (Reverse Repos).
It can be seen from the graph that they began to grow significantly as early as April 2021, when the first phase of the last big bull run ended, for example, but QE was still underway.
QE began to slow in early 2022, and was stopped altogether around March of that year.
At that very time t
We współpracy z: https://en.cryptonomist.ch/2023/07/04/fed-could-once-again-tank-crypto/
