Bitcoin (BTC) and gold showed clear signs of forcefulness on March 24 as the Us Federal Reserve revealed the true extent of its coin press.

Having cleared $half-dozen,000 on Monday, BTC/USD went on to hold footing at around $half dozen,500. At the same time, golden rallied, as market analysts suggested its contempo selloff was over.

Fed: Nosotros take "infinite cash"

The precious metal traded at around $i,572 at printing time, a daily improvement of 1.35%.

Bitcoin versus gold 1-year chart

Bitcoin versus gold ane-year chart. Source: Skew.com

For golden, the rebound echoed behavior during the financial crisis of 2008, Goldman Sachs highlighted, quoted by Bloomberg. Then, as at present, the Fed removing barriers to dollar liquidity ultimately sent the precious metal shooting higher.

Equally various sources reported, the Fed will now embark on a giant buyback exercise which volition be worth $125 billion each twenty-four hours — or a massive $2.5 trillion per calendar month.

Aimed at shoring up the U.S. economic system, the scheme is alike to flooding the market with "new" dollars in what has become the biggest money printing experiment in U.S. history.

Treasury Secretary Steven Mnuchin has already described the liquidity on offer to businesses and banks as "well-nigh unlimited."

In an interview with CBS on Sun, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, went further still, saying:

"There is an infinite amount of cash in the Federal Reserve. We will do whatsoever we need to exercise to make sure at that place's plenty cash in the cyberbanking system."

Fed going "total Republic of zimbabwe"

This, in turn, has emboldened golden bugs and Bitcoiners alike, who argue that fiat is rapidly unraveling equally a trustworthy financial instrument. In a tweet post-obit the news, PlanB, the creator of Bitcoin's stock-to-flow price model, described the Fed's actions as the cardinal bank going "full Republic of zimbabwe."

Bitcoin stock-to-flow price model as of March 24

Bitcoin stock-to-flow price model as of March 24. Source: PlanB/ Twitter

It's timing, he noted, was pertinent — just 50 days before Bitcoin's supply is due to drop to new lows of half dozen.25 BTC per block.

Stock-to-flow calls for an average Bitcoin price of effectually $100,000 between 2022 and 2024. PlanB has demonstrated that the model remains intact, despite BTC/USD dipping below $4,000 last week.