{"id":127495,"date":"2025-04-18T20:21:49","date_gmt":"2025-04-18T20:21:49","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=127495"},"modified":"2025-04-18T20:21:49","modified_gmt":"2025-04-18T20:21:49","slug":"crypto-biz-is-the-us-fed-prepping-the-money-printer","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=127495","title":{"rendered":"Crypto Biz: Is the US Fed prepping the money printer?"},"content":{"rendered":"

Source: Cointelegraph.com NewsThe US Federal Reserve under Jerome Powell has developed a reputation for dragging its feet on implementing important policy changes. However, a top central banker has assured that the Fed is \u201cabsolutely\u201d ready to do whatever it takes to avoid a financial crisis, whether triggered by the US-led trade war or other adverse developments.
\nAlthough the long-awaited \u201cFed pivot\u201d could still be months away, policymakers appear poised to gradually ease financial conditions, beginning last month when they reduced the redemption cap on Treasurys by 80%.\u00a0
\nFed policy exerts a gravitational pull on global markets through US dollar liquidity, which has a direct impact on Bitcoin (BTC) and the broader cryptocurrency markets. In fact, the Fed\u2019s impact on crypto has only grown since the COVID-19 pandemic. Since then, Bitcoin has been highly correlated with liquidity \u2014 a fact that was reinforced by a 2024 academic paper by Kingston University of London.\u00a0
\nThis week\u2019s Crypto Biz newsletter highlights remarks from a senior central bank official and covers major developments in the Ethereum exchange-traded fund (ETF) market and the Bitcoin mining sector.
\nFed\u2019s Collins: Central bank will respond to liquidity constraints\u00a0
\nBoston Fed President Susan Collins said the central bank \u201cwould absolutely be prepared\u201d to backstop markets if economic and financial conditions deteriorated rapidly.\u00a0
\nCollins was specifically referring to potential liquidity issues or other disruptions that could hinder normal market functioning.
\nCurrently, however, Collins noted that the central bank is \u201cnot seeing liquidity concerns.\u201d Should that outlook shift, she emphasized that the Fed has \u201ctools to address concerns about markets functioning or liquidity.\u201d
\nCollins is a voting member of this year\u2019s Federal Open Market Committee (FOMC), which is responsible for setting interest rates.\u00a0
\nInvestors expect the FOMC to refrain from cutting interest rates at its forthcoming meeting in May, based on Fed Fund Futures prices. However, the likelihood of a June rate cut has risen to 67.5%.\u00a0
\nFed\u2019s Collins pictured in an interview with Bloomberg. Source: Bloomberg TelevisionUS regulators approve options on spot ETH ETFs
\nThe US Securities and Exchange Commission has green-lighted options trading for several spot Ether (ETH) exchange-traded funds, an important milestone in ETH\u2019s quest to attract more institutional capital.
\nAccording to an April 9 announcement, the approvals were granted to BlackRock\u2019s iShares Ethereum Trust, Bitwise\u2019s Ethereum ETF (ETHW), Fidelity\u2019s Ethereum Fund (FETH), and Grayscale\u2019s Ethereum Trust (ETHE) and Ethereum Mini Trust (ETH).
\nOptions give ETF investors the ability to hedge against a decline in assets, potentially making the funds more attractive to investors.\u00a0
\nThe options trading approval is also seen as an important step in the SEC\u2019s deliberations around staking services on ETH ETFs. According to Bloomberg analyst James Seyffart, the SEC may be on track to approve staking as early as May.
\nSource: James SeyffartSolana staking ETFs come to Canada
\nAs the US SEC continues to deliberate about crypto staking services, Canadian regulators have approved another suite of crypto staking ETFs, this time for Solana (SOL).
\nThis week, asset managers 3iQ, Purpose, Evolve, and CI received approvals from the Ontario Securities Commission to offer staked Solana ETFs. The 3iQ fund selected blockchain infrastructure provider Figment as its primary staking provider.\u00a0
\nAccording to 3iQ\u2019s website, its Solana Staking ETF will offer yields of between 6% and 8%.
\nThe Toronto-based 3iQ launched a spot Bitcoin (BTC) ETF in 2021, some three years before similar funds were approved in the United States.
\nBitdeer reportedly pivots to self-mining as trade war rattles supply chain
\nBitcoin mining company Bitdeer is expanding its self-mining capacity and pouring more resources into the United States amid fears that the US-led trade war will rattle global supply chains and upend its hardware business.\u00a0
\nAccording to an April 15 report by Bloomberg, Bitdeer is prioritizing BTC mining due to declining demand for its mining rigs.
\nAs the broader industry grapples with the potential impact of tariffs, \u201cOur plan going forward is to prioritize our own self-mining,\u201d Bitdeer executive Jeff LaBerge told Bloomberg.\u00a0
\nOn the topic of US expansion, LaBerge said, \u201cThis is something we\u2019ve been planning for a long time.\u201d\u00a0
\nUS President Donald Trump\u2019s sons, Eric and Don Jr, are going all-in on Bitcoin mining after backing a new venture with Hut 8. This follows a renewed commitment by the Trump administration to promote \u201cmade in America\u201d Bitcoin.
\nCrypto Biz is your weekly pulse on the business behind blockchain and crypto, delivered directly to your inbox every Thursday.Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsThe US Federal Reserve under Jerome Powell has developed a reputation for dragging its feet on implementing important policy changes. However, a top central banker has assured that… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127495"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=127495"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127495\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=127495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=127495"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=127495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}