Odaily Planet Daily reports that Peter Schiff posted on X stating that gold and silver rose due to a new round of quantitative easing (QE), and he believes that Bitcoin "did not even rise" and should "be eliminated." (Cointelegraph)

Author of The Big Short and well-known investor Michael Burry recently issued a strong warning regarding the Federal Reserve's plan to purchase $40 billion worth of T-bills within a month. He believes that this move exposes the structural fragility of the U.S. banking system rather than stability as perceived by the outside world. At the same time, this policy direction could create new downward pressure on Bitcoin (BTC) and the broader crypto market. Federal Reserve Chairman Powell stated that this bond purchase is a "reserve management operation" and not quantitative easing (QE). However, Burry pointed out that the Fed has continued to expand its balance sheet while the banking system is under pressure, indicating that the market still struggles to move away from liquidity support. He emphasized that bank reserves have now exceeded $3 trillion, far above the $2.2 trillion level before the 2023 regional banking crisis. He warned that if the banking system must rely on such a large "lifeline" of liquidity, it is not strong but fragile.

Bitcoin prices plummeted to $89,000 during Asian trading hours, approaching the $80,000 mark at one point, dragging the total cryptocurrency market capitalization down from $3.22 trillion to $3.06 trillion, a loss of $160 billion in a single day. As expected, the Federal Reserve cut interest rates by 25 basis points, but disagreements within the FOMC and Powell's hawkish stance became the core reasons for the sharp market correction. The meeting minutes revealed that several officials opposed the rate cut, and Powell further indicated that the Fed might pause rate cuts until January 2026. This hawkish signal quickly dampened risk asset sentiment. Additionally, the Fed announced it would purchase up to $40 billion in Treasury securities within 30 days. Although officials emphasized that this was not quantitative easing (QE), the market widely viewed this move as exposing liquidity pressures. Gold prices subsequently rose, and analysts warned that the banking system could face deeper risks.

Man Group stated that if the bond market questions the independence of the Federal Reserve Chair, the Fed may need to implement quantitative easing (QE) policies to lower long-term borrowing costs. Chief Market Strategist Hooper reminded investors to pay attention to the situation in the UK in 2022, emphasizing the importance of the credibility of public officials.