I recently came across an analysis about the Federal Reserve and Bitcoin. I was a bit confused but found it really interesting🤔
It’s said that if the Federal Reserve keeps interest rates unchanged in Q1 next year, Bitcoin might drop to $70,000? That sounds pretty scary. But on second thought, I found another more optimistic possibility—the Fed has stopped quantitative tightening and is now buying $40 billion worth of short-term government bonds each month. Some analysts call this "hidden quantitative easing" (sounds pretty impressive). If this plan continues, it could inject liquidity into the market, and Bitcoin might actually rise to $92,000–$98,000!
So, the Fed’s policy direction is really crucial. Plus, over $50 billion in ETF fund inflows and institutional accumulation of coins will also drive the market. I feel like I finally understand why everyone is paying attention to macroeconomic policies—these decisions directly impact the rise and fall of the crypto market!
Can any experienced folks help me understand how the Fed’s QE and QT actually transmit to the coin prices? I want to get the logic clear so I won’t be so confused when looking at the market💪
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I recently came across an analysis about the Federal Reserve and Bitcoin. I was a bit confused but found it really interesting🤔
It’s said that if the Federal Reserve keeps interest rates unchanged in Q1 next year, Bitcoin might drop to $70,000? That sounds pretty scary. But on second thought, I found another more optimistic possibility—the Fed has stopped quantitative tightening and is now buying $40 billion worth of short-term government bonds each month. Some analysts call this "hidden quantitative easing" (sounds pretty impressive). If this plan continues, it could inject liquidity into the market, and Bitcoin might actually rise to $92,000–$98,000!
So, the Fed’s policy direction is really crucial. Plus, over $50 billion in ETF fund inflows and institutional accumulation of coins will also drive the market. I feel like I finally understand why everyone is paying attention to macroeconomic policies—these decisions directly impact the rise and fall of the crypto market!
Can any experienced folks help me understand how the Fed’s QE and QT actually transmit to the coin prices? I want to get the logic clear so I won’t be so confused when looking at the market💪