The Federal Reserve’s new emergency loan program, the Bank Term Funding Program (BTFP), is aimed at preventing bank runs and ensuring that banks have access to liquidity.
The program allows banks to use U.S. Treasuries and mortgage bonds as collateral for loans from the Fed at face value. This program is seen as necessary due to the severe banking situation, with unrealized losses on Treasury and other holdings by U.S. banks amounting to $620 billion.
Interestingly, the acronym for the program, BTFP, is similar to the popular cryptocurrency investing term, BTFD, which stands for Buy The Fu****g Dip. This is a reference to the belief among Bitcoin investors that, despite its high volatility, the cryptocurrency will continue to rise in price due to its limited supply and continued adoption.
Bitcoin proponents argue that the ever-increasing volume of money reduces the purchasing power of the dollar, making Bitcoin an attractive alternative investment. The Fed’s Bank Rescue Program is seen as contributing to the spread of dollars, which in turn supports the slogan ‘BTFD’ of Bitcoin supporters.
It is important to note that investing in Bitcoin is not without risks, as the cryptocurrency has experienced significant price fluctuations in the past. However, Bitcoin investors believe that its potential for long-term growth outweighs these risks.
The Fed’s BTFP is a significant policy response to the current banking situation, and its acronym’s similarity to the popular Bitcoin investing term is a coincidence that has not gone unnoticed. Whether or not the Fed’s policy will ultimately support Bitcoin investing remains to be seen, but it is clear that the cryptocurrency continues to attract attention from investors and policymakers alike.
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This article was republished from azcoinnews.com
