Fed Acquires $34.8 Billion in U.S. Treasuries in Two Days – Is Quantitative Easing Back?

# Federal Reserve Infuses $34.8 Billion into Market, Igniting QE Speculation The Federal Reserve (Fed) has injected $34.8 billion into the U.S. market by purchasing Treasuries over two days. This move has stirred investor interest and reignited discussions about the potential resumption of quantitative easing (QE). Conducted without an official policy announcement, some interpret this as an unofficial return to QE. On May 5, the Fed bought $20 billion in three-year Treasury bonds, followed by $14.8 billion in 10-year Treasury bonds on May 6. According to *The Coastal Journal*, "$34.8 billion in Treasury securities were acquired in just two days." The Fed's actions have divided market participants, as it has not explicitly declared a QE policy. # Arthur Hayes Predicts: "Bitcoin Could Reach $250K by 2025 with QE Resumption" Arthur Hayes, former CEO of cryptocurrency exchange BitMEX, views the liquidity injection as a "highly dovish pivot," suggesting it marks the start of QE. Hayes predicts that if the Fed officially resumes QE, Bitcoin (BTC) could soar to $250,000 by the end of 2025. "This is just the beginning," he stated, emphasizing his belief that these actions could signal a significant shift in monetary policy. # Diverging Opinions on QE Resumption Cryptocurrency-focused media outlet *BeInCrypto* proposed that the Fed's Treasury purchases increase the chance of QE's return. New liquidity in asset markets could lead to three potential outcomes: a drop in real yields, a decline in the dollar's value, and a boost in cryptocurrency market inflows, the publication noted. Not all experts concur. Some macroeconomic analysts argue that there is no current systemic financial crisis warranting QE. They view the Fed's actions as precautionary rather than indicative of a broader policy shift. # Safe-Haven Assets Rally: Gold and Bitcoin Surge Investor preference for safe-haven assets has become more apparent. Gold prices soared to $3,437.60 per ounce, marking a 28.84% rise year-to-date and nearing record highs, signaling that investors are hedging against economic uncertainties. Bitcoin (BTC) also briefly surged past $97,000, showing strong bullish sentiment. Investors are eagerly awaiting Federal Reserve Chair Jerome Powell's upcoming remarks for hints of a potential "soft pivot" in monetary policy. Should Powell indicate a shift, Bitcoin may establish $97,000 as a key support level; otherwise, lack of clear direction could renew cryptocurrency market volatility. Market participants remain anxious as they await clarification on whether the Fed's recent actions are the precursor to full-fledged QE or a one-off measure to stabilize liquidity. Either way, the impacts on traditional and digital assets could be significant.