- Fed Chair Powell dismissed quantitative easing, reinforcing commitment to ongoing quantitative tightening.
- Bitcoin dominance may persist unless monetary policy shifts in Q2 2025.
The Federal Reserve meeting, a spectacle of economic theater, delivered not the anticipated relief but a cold splash of reality to the market’s feverish optimism. 🎭
Jerome Powell’s Bold Gambit
On the 11th of February, Fed Chair Jerome Powell, with the poise of a man who has seen too many economic cycles, dismissed the notion of renewed Quantitative Easing (QE). He declared, with the gravitas of a chess grandmaster, that such measures are only entertained when interest rates are at zero. 🏦
He further cemented the central bank’s dedication to Quantitative Tightening (QT), a move that has left the crypto community in a state of collective bewilderment. Some applaud it as a necessary evil for economic stability, while others lament it as a potential delay to Bitcoin’s [BTC] next grand performance. 🎢
The Community’s Chorus
Macro analyst Alex Krüger took to X, echoing Powell’s stance with the precision of a metronome, stating,
“We are ages away from QE – some people needed to hear this.”
However, when challenged by an X user who quipped,
“No need for QE only for discontinuation of QT.”
Krüger retorted,
“A few more months to go for that.”
Felix Jauvin, the host of the On the Margin podcast, added his voice to the cacophony, proclaiming,
“We are entering an economic golden age in my opinion and are less dependent on monetary dominance to keep things together. Again, THIS IS A GOOD THING!”
Amidst the chorus, many believe that both the broader financial market and the crypto sector are on the cusp of a renaissance. 🌅
Yet, crypto analyst Kevin offered a discordant note, pointing out,
“We do not need QE but we have also never seen a macro cycle top in #BTC Dominance in its era of relevancy with the #Altcoins market in a time where QT was actively occurring.”
Is Bitcoin’s Bull Run on the Horizon?
Kelvin posited that historically, Bitcoin’s dominance over the crypto market has never peaked during a period of QT. This phase, where central banks restrict liquidity through asset sales or high interest rates, could keep BTC’s market dominance in a state of limbo. 🎭
Analysts predict a potential shift in Q2, suggesting that macroeconomic factors might sway market trends during this period. However, if Powell remains steadfast in his commitment to prolonging QT or keeping interest rates elevated, the much-anticipated “altcoin season” may remain a pipe dream. 🎈
The Current Market Spectacle
This event coincided with Powell’s semi-annual monetary report to the U.S. Congress on the 12th of February. He reaffirmed that the Federal Reserve was “in a hurry to change its policy stance.” 🏃♂️
Simultaneously, the broader crypto market experienced a notable upswing. The global market capitalization reached $3.19 trillion, marking a 1.35% increase over the past day. BTC, the leading cryptocurrency, mirrored this trend, trading at $96,009.53 at press time, with a modest gain of 0.04% in the last 24 hours, according to CoinMarketCap. 📈
These figures reflect the market’s resilience amidst ongoing macroeconomic uncertainties, reinforcing Bitcoin’s dominance amid shifting monetary policies. 🛡️
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2025-02-13 15:09