Axel Adler Jr, a noted blockchain and macroeconomic research analyst, recently stated that Polymarket traders expect the Federal Reserve to halt its Quantitative Tightening (QT) policy by May 2025.
Market Shift in Expectations
According to Polymarket, traders estimate a 100% probability of QT ending by May 2025. The sentiment shift observed in mid-March indicates a growing belief in an imminent end to QT due to economic conditions and policy signals. The trade volume exceeded $6.25 million, illustrating participants' confidence in an early QT termination.
Crypto Implications
The potential cessation of QT by the Federal Reserve could signal a shift toward a looser monetary policy, likely benefiting Bitcoin and the broader cryptocurrency market. With increased liquidity and lower interest rates, investors might turn to Bitcoin and other digital assets as alternative stores of value. Historically, looser monetary policies have correlated with strong crypto market rallies.
Crypto Market Outlook
Axel Adler Jr’s analysis highlights Polymarket traders’ expectations that the Fed will pivot by May 2025, ending QT. This anticipated policy shift could significantly impact Bitcoin and the cryptocurrency sector, fostering a bullish environment for digital assets as investors seek hedges against traditional market uncertainties.
The expectations of Polymarket traders and the predicted end of QT by May 2025 may lead to positive shifts for Bitcoin and the broader crypto market, offering a new strategy for investors amidst economic uncertainties.
