💸 Explanation: When the FED injects money, does coin increase? When the FED withdraws money, does coin decrease? 🏦 1. FED & Monetary Policy 2. What tools does the FED use to inject/withdraw money? 3. Money Injection 4. Money Withdrawal 5. Don't Just Focus on Interest Rates 6. When the FED Injects Money, Does Coin Increase? When the FED Withdraws Money, Does Coin Decrease? 7. Coin Peers twitter.com/gm_upside/status/1...

1. What is the FED and the role of monetary policy? Imagine the FED as the “helmsman” of the US economic ship, which in turn affects the whole world. The Fed is not only concerned with printing money or issuing dollars, but also regulating how money flows in the system.

2. What tools does the FED use to turn on/off the “tap”? The FED, the “steering wheel” of the US economy, uses three main tools to regulate the amount of money, keep inflation stable, promote growth and avoid crises. 👉1. Operating interest rate – Federal Funds Rate: Economic switch

3. What is money pumping? 🤑 When you hear the FED “pump money”, you might imagine them printing paper money and giving it to everyone. ⛔In reality, that’s not the case, but the FED uses tools to increase the amount of money in the financial system. Purpose? Stimulate spending

4. What is money siphoning? The opposite of money pumping, money siphoning is when the FED wants to reduce the amount of money in the economy. Why do they do this? Usually to curb inflation, when prices rise too quickly and make people miserable. ⛔For example, in 2022: gasoline prices, food

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5. Why do investors only focus on interest rates? If you often surf X, you will definitely see people mentioning the FED interest rate constantly. Why do you only pay attention to interest rates? 🚦 Simply because it is like a traffic light signaling: interest rate

6. When the FED pumps money, does the coin increase? When it sucks money, does the coin decrease? Now comes the most interesting part: is it true that when the FED pumps money, Bitcoin flies, and when it sucks money, Bitcoin falls? 🎯 The answer is… mostly true, but not always. And importantly, there is a delay! 🟢When

7. What is the purpose of the FED pumping/withdrawing money? What should coin players pay attention to? The FED raises interest rates or withdraws money, making coin players worried. But wait, the FED does this for a reason, and understanding this will help you panic less when Bitcoin goes up and down 🫣 Simply put, the FED is like a driver of a business

In addition to interest rates, remember to Also Read M2 Money Supply, FED Balance sheet, Inflation and importantly the 4-year market cycle according to Bitcoin Halving. 😎 The important thing is that downtrend still has a chance! x.com/gm_upside/status/1918309... Hope you guys support @gm_upside with a like & retweet😍