Crypto Bulls Cheer as Fed Pivot Hopes Rise and Quantitative Tightening Nears Its End
Crypto traders are optimistic as markets price in a Fed rate cut and speculation grows that Quantitative Tightening may soon end.Summary
Prediction markets indicate a high probability (98%) that the Federal Reserve will implement a 25 basis point rate cut at its late October meeting, with CME data showing near certainty (99.9%). This dovish outlook, coupled with increasing speculation that the Fed will signal an end to Quantitative Tightening (QT), is fueling excitement among crypto bulls. Analysts are drawing parallels to 2019, when a liquidity surge following market instability and central bank intervention caused Bitcoin prices to roughly triple over several months. Ending QT could inject significant liquidity, potentially boosting digital asset prices. However, the article cautions that while liquidity supports risk assets, the current digital asset market is more mature, and broader macroeconomic factors like inflation and regulation will ultimately influence the outcome.
(Source：BeInCrypto)