Bitcoin Bull Run Over? Fed Chair Powell Just Killed QE Hopes
In Tuesday’s testimony, Fed Chairman Jerome Powell weakened hope for quantitative easing (QE), reiterating that “quantitative easing is the tool we only use when interest rates have reached zero”, and the Fed is still very A long way to go “from ending QT.” This position challenges the notion that, like in the past cycles, fast-to-active relaxed hubs may emerge from Bitcoin and the entire cryptocurrency market.
The end of the bullhead run of Bitcoin and altcoins?
Macro analyst Alex Krüger Posted On X “We’ve been a long time since QE”, it emphasizes that some market participants need to hear Powell’s position clearly. Another commentator Tagoo pointed out that “no quantitative easing is needed, just QT needs to be deactivated”, prompting Krüger to reply that QT may take “a few more months” to end.
Felix Jauvin, host of the show podcast, Comment By X: “For the upcoming dreamer of QE, I hope you just heard what Powell said: “Quantitative easing is the tool we only use when zero is already zero”. You don’t need zero rate and quantitative easing. This Meaning a lot of pain has to happen during this period. Quantitative easing won’t save you excessive Alt bags anytime soon.”
Haowen believes The U.S. economy It has shifted from a period of stagnation to a more basic growth phase. According to him, “we can still see the bids for bull markets and risky assets without these currency pipeline skills” because he believes it is a healthier, productivity-led environment, one that he calls the “golden age of the economy” .
Dan McArdle reminds followers that markets can keep risks “in the economy decent and some credit expansion” still exist. He warned the crypto community not to anchor expectations to zero interest rates policy and quantitative easing, which suggests that a stable economy can still support Bitcoin’s upside potential.
Julien Bittel, head of macro research at Global Macro Investors (GMI), frame Powell’s comment in “Everything Code” believes that quantitative easing is only part of the picture of global liquidity. While the Fed may not move to quantitative easing any time soon, Bitel notes that other factors, such as the actions of the People’s Bank of China, private credit creation or a shift in the Treasury General Account, could also inject liquidity into the market. “The Fed also has other tools that they have been working with the Treasury Department since Covid smoothed QT impacts through TGA and RRP,” Bittel said.
He reminded traders that “it’s not just the Fed in this equation” and pointed out the possibility that interest rates in China have increased by zero China launches some form of quantitative easing. “As early as 2017, the Fed was a small player in the liquidity game. In fact, the Fed was doing QT and hiking ratios throughout the year, but risky assets still flourished, and after a sharp 28% correction in January, Bitcoin He added.
Crypto analyst Kevin also believes that Bitcoin may not strictly require quantitative easing to flourish. However, he pointed out: “We have never been there either. BTC AdvantagesDuring active QT, doubts arise about the possibility of a robust altcoin season. “I still believe my analysis tells me that sometime in Q2 will end, but if we take Powell as face value, the daily altcoins season coming callers will continue to look more lost and wrong over the last two years, and They have and have passed,” the statement.
At press time, BTC was trading at $96,334.
Featured images from Shutterstock, charts from TradingView.com
