The Federal Reserve’s latest meeting minutes have revealed a potential end to quantitative tightening (QT). This development has sparked optimism in the crypto market, with Bitcoin trading near $97,000.
Fed’s Shifting Stance on QT
The Fed’s February minutes show central bankers considering halting balance sheet reduction. Several officials suggested slowing QT due to debt ceiling concerns. This unanimous decision signals a clear shift in monetary policy.
The Fed has already cut its balance sheet runoff rate by half. The reverse repo facility approaches zero while reserves near 3% of GDP. These factors make QT’s end more likely by Q3 2025.
Market Impact Analysis
Historical data shows crypto markets respond positively to increased liquidity. The end of QE in 2021 marked the previous bull run’s conclusion. Now, QT’s potential end could trigger fresh momentum.
Bitcoin’s current price action suggests strong bullish sentiment. The $97,000 level serves as immediate support. Technical indicators point to a possible push toward $100,000 if liquidity conditions improve.
Expert Perspectives
Market analyst Felix Jauvin expects a sequence of events: TGA drawdown, QT end, and potential SLR exemption. He emphasizes that QE remains unlikely without significant market deterioration.
Crypto analyst Pentoshi predicts QT’s end by Q3, citing political factors and previous accurate forecasts. This timeline aligns with broader market expectations.
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Looking Ahead
The crypto market stands at a crucial juncture. QT’s end could boost institutional investment in digital assets. Traders should monitor Fed communications for further policy shifts.
Bitcoin’s technical setup remains strong. The asset shows resilience above $95,000. A break above $100,000 could trigger a broader crypto market rally.
Tags: Bitcoin, Federal Reserve, Quantitative Tightening, Market Analysis, Crypto Trading
Source: NewsBTC