Genius Group Forced to Liquidate Its Bitcoin Holdings, Here's Why

Technology

Bitcoin Price Surges As Federal Reserve Reveals Plans To Provide Liquidity If Necessary – Crypto News

Published

1 year ago

April 12, 2025

Dripp

The Bitcoin price saw a significant increase in the past 24 hours as the Federal Reserve made its move attuned to the current market dynamics. This is a favorable price move in that the Boston Federal Reserve president, Susan Collins, said the central bank’ “would absolutely be prepared” to exercise their firepower to stabilize financial markets if conditions became out of control.

Bitcoin Price Responds Positively To The FED’s Response

Bitcoin price has recorded robust growth in the last 24 hours. BTC’s 5.4% gain follows as the entire cryptocurrency market shows signs of recovery. Global crypto market capitalization has also increased by 4.61% to stand at $2.65 trillion.

The bullish price action isn’t exclusive to Bitcoin, as the Ethereum price has also recorded gains of close to 3%. This has restored it to the $1,500 mark. The market-wide bounce would indicate that investors could be reacting positively to hints of support from financial regulators.

Bitcoin’s price movement appears to be occurring in tandem with traditional financial markets, which have been processing both the implications of Trump’s tariff policies and the Federal Reserve’s statements about potential interventions.

The correlation between cryptocurrency markets and traditional finance continues to be evident during periods of economic uncertainty and central bank policy discussions.

Federal Reserve Prepared To Deploy Financial Tools If Needed

In remarks to the Financial Times, Susan Collins highlighted the Fed’s readiness to act swiftly if market conditions become worse. “We have had to deploy quite quickly, various tools,” Collins noted. She referred to past interventions during chaotic market conditions. “We would absolutely be prepared to do that as needed.”

This reassurance comes amid intense market reactions to President Trump’s tariff announcements. This has caused significant movement in both equity, bond and crypto markets. The volatility has been especially notable in the $29 trillion Treasury market, which is important to the global financial system. The 10-year Treasury yield is up 0.5 percentage points, to 4.5%, over the past week–an unusually large move for an asset with this level of stability.

Collins emphasized that emergency interest rate cuts would not be the primary response to market functioning issues. “The core interest rate tool we use for monetary policy is certainly not the only tool in the toolkit and probably not the best way to address challenges of liquidity or market functioning,” she stated.

Boston Fed president Eric Rosengren said any action would be reliant on “what conditions we were seeing,” suggesting intervention could differ if markets were under pressure.

Fed Officials Warn About Economic Impact Of Tariffs

Although markets and Bitcoin price reacted favorably to liquidity guarantees by the Federal Reserve, officials in the central bank are expressing worries about the economic impact of President Trump’s tariffs.

John Williams, head of the New York Fed, has warned that Trump’s tariffs could trigger several negative economic effects. This includes sending inflation “sharply higher,” increasing unemployment, and “significantly” weakening the country’s economic growth.

Susan Collins echoed these inflation concerns and stated that she expects inflation could “well be above 3 percent this year” as a result of the tariff implementations.

Collins mentioned that the Fed has “additional standing facilities that can help to support market function, that are already in place,” suggesting preparedness for various scenarios that might develop.

As the market reacted positively to the FED’s statement, on the other side, China has increased its tariffs on US goods to 125%.