The Federal Reserve's announcement to slow down quantitative tightening has sparked a lively discussion among experts on Bitcoin's future price trajectory.
The Slowing of Quantitative Tightening
The Federal Reserve has announced a reduction in its securities sell-off plans from $25 billion to $5 billion per month starting in April. This could ease liquidity pressures and support risk assets like Bitcoin.
Reactions from Leading Analysts
BitMEX co-founder Arthur Hayes expressed that the $77,000 price level may be a bottom. Real Vision's chief crypto analyst Jamie Coutts also noted that "QT is effectively dead," seeing the reduction in treasury volatility as a positive sign for liquidity. Axie Infinity co-founder Jeff "JiHo" Zirlin added that the Fed slowdown is positive for both crypto and equity markets.
Outlook for the Cryptocurrency Market
Crypto market sentiment has improved following the Fed's comments. The Crypto Fear & Greed Index has moved to "Neutral" territory. Infinex founder Kain Warwick considers the current downturn a normal correction in a bull market, believing that the four-year cycle remains valid.
The Fed's announcement regarding quantitative tightening impacts market expectations, emphasizing the importance of monitoring fiscal policy and its effects on cryptocurrency price dynamics.
