Fed To End QT In December: Will Bitcoin Mirror The Massive Price Crash From Last Time?
NeutralCryptocurrency
- The Federal Reserve is expected to end its quantitative tightening (QT) in December, a shift that may influence the liquidity available for risk assets like Bitcoin. This change comes after a prolonged period of QT, which has been linked to Bitcoin's slower-than-expected growth in the current cycle. The Fed's potential move towards quantitative easing could significantly alter market dynamics.
- This development is crucial for Bitcoin as it may restore buying power and liquidity, which have been constrained during the QT phase. Analysts suggest that an influx of liquidity could lead to a resurgence in Bitcoin prices, potentially reversing recent downward trends.
- The anticipation of the Fed's policy shift has already sparked increased volatility in the cryptocurrency markets, with significant trading activity observed as traders prepare for potential price movements. The broader economic implications of the Fed's decisions are also being closely monitored, as they could impact not just Bitcoin but the entire cryptocurrency landscape.
— via World Pulse Now AI Editorial System
