Fed to End QT: Could this Trigger Multi-Year Altcoin Rally Akin to 2019-2022?
The end of the Fed's Quantitative Tightening (QT) on December 1, 2024, historically suggests a multi-year altcoin rally, though delays in balance sheet expansion may postpone the impact.Summary
The Federal Reserve's Quantitative Tightening (QT) is scheduled to end on December 1, 2024, a shift that historically correlates with significant strength in altcoins relative to Bitcoin. Analyst Matthew Hyland points to past non-QT periods (2014-2017 and 2019-2022) where sustained altcoin uptrends lasted 42 and 29 months, respectively, evidenced by the OTHERS.D/BTC.D ratio.
Technically, the ALT/BTC pair often bottoms near the 0.25 level after QT concludes, signaling the launch of an 'altcoin season,' although the current ratio is higher at 0.36. Furthermore, recent data shows Bitcoin dominance declining, suggesting early capital rotation into altcoins.
However, experts caution that the immediate market impact may be delayed. Drawing parallels to 2019, settlement lags in treasury maturities could postpone observable balance sheet expansion until early 2026, meaning traders may need patience before witnessing the full effects of the renewed liquidity.
(Source：BeInCrypto)