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Possibility raised of Fed buying equity ETFs; could it lift cryptocurrencies?

An analysis said that if U.S. stocks enter a steep bear market, Federal Reserve market support could expand liquidity in cryptocurrency markets. Analysts cited the size of the U.S. stock market and political pressure to avoid a prolonged downturn. Eric Balchunas said the Fed could break with decades of precedent and buy equity ETFs. Market participants said Fed intervention could include rate cuts and balance-sheet expansion, though high inflation could limit immediate action.