- Fed Chair Powell dismissedQuantitative EasingReaffirming commitment to continued quantitative tightening.
- Bitcoin dominance is likely to persist, unless there are changes in monetary policies by Q2 of 2025.
In reality, the Federal Reserve’s highly-anticipated meeting has dealt another blow to optimism on the market.
Jerome Powell’s brave move
Fed chair Jerome Powell rejected the possibility of a renewed Quantitative Amplification (QE) in his testimony of the 11th February. Powell stressed that the only time such measures would be considered is when the interest rate was at zero.
The central banker reiterated its commitment to Quantitative Tightening, signaling a policy change is still far away.
The crypto community has been divided over this stance. Some see it as an important step for the stability of economics, while others are concerned that it will delay. Bitcoin’s [BTC] The next big rally is coming up.
Reactions of the community
For instance, Macro analyst Alex Krüger Powell reiterated his position on X and stated,
“We are ages away from QE – some people needed to hear this.”
The opposite is true when the statement of an X (formerly Twitter) user Noted by:
“No need for QE only for discontinuation of QT.”
Krüger replied saying,
“A few more months to go for that.”
Similar sentiments are also expressed by Felix JauvinThe host of the On the Margin Podcast added.
“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!”
Many believe, based on comments made by others, that the financial sector and crypto market are both poised to grow.
The crypto analyst Kevin He offered an opposing perspective when he pointed,
“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.”
Bitcoin Bull Run is just around the Corner
Kelvin said that in the past, Bitcoin’s dominance on the crypto-market has never reached its peak during QT. During this phase, central banks limit liquidity by selling assets or increasing interest rates.
BTC could maintain its current sideways trend unless there’s a change in the monetary policy.
The market could experience a shift during Q2. This is because macroeconomics factors may influence the trends of this period.
But if Fed Chairman Powell sticks to his position of prolonging the QT, or maintaining high interest rates, it will be difficult for anyone to predict an imminent recession. “altcoin season” It is possible that the allegations are unfounded.
The following are some of the ways to get in touch with each other:This scenario challenges expectations for a widespread altcoin boom, and reinforces Bitcoin’s dominant position in the digital assets space.
Current market scenario
Powell presented his semi-annual report to Congress in the U.S. on February 12th. The Federal Reserve is still in charge, he said. “in a hurry to change its policy stance.”
It also coincided with an upswing on the crypto-market in general. Global market capitalization has reached $3.19 trillion. This represents a 1.35 % increase in the last day.
BTC was the top cryptocurrency at this time, and it traded at $96,009.53. Bitcoin gained 0.04% in the past 24 hours. CoinMarketCap.
The figures show the resilience of the Bitcoin market despite macroeconomic uncertainty.
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Source: ambcrypto.com
