Fed calling for more stimulus is ‘code for buy Bitcoin,’ says Winklevoss

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The United States Federal Reserve is still unintentionally advertising Bitcoin, as Chair Jerome Powell argues for more money printing.

In a tweet on Nov. 6, Tyler Winklevoss, co-founder of exchange Gemini, said that Powell’s latest speech this week was “code for buy Bitcoin.”

Powell: Congress should agree more stimulus

Powell was addressing a news conference, which followed the Fed’s Nov. 5 meeting on the state of the economy and future measures.

As before, he reiterated that the central bank had not exhausted its range of tools for supporting the economy. These have so far included heavy interventions in stock markets, financial stimulus measures and direct payments to Americans.

“I just would say that I think we’ll have a stronger recovery if we can just get some more fiscal support, when it’s appropriate… the size Congress thinks is appropriate,” he said, quoted by Reuters.

Bitcoin proponents have long warned about the long-term impact of short-term meddling in the economy by central banks, this represented by the huge increase in public debt seen in the U.S. and elsewhere in 2020.

The Fed’s balance sheet stood at $7.14 trillion on Friday, near record highs. U.S. national debt has topped $27.2 trillion, a figure never before seen in history.

Fed balance sheet since 2007. Source: Federal Reserve

“Virtually no BTC left for sale”

In what some this week described as a clear demonstration of simple supply and demand at work, Bitcoin — with its fixed supply — continued climbing as Powell delivered his speech.

The largest cryptocurrency has gained over 15% since the start of the week, rising to levels not seen since the end of 2017.