- Federal Reserve announces end of Quantitative Tightening by 2025, impacting asset markets.
- Main event influences BTC and ETH volatility this week.
- Fed’s liquidity plans affect global risk assets and market sentiment.
Federal Reserve Chair Jerome Powell’s announcement of ending Quantitative Tightening in late 2025 impacts BTC and ETH risk appetite.
This influences liquidity expectations and rate-cut odds, leading to market volatility and significant price movements in the cryptocurrency sector.
The Federal Reserve has announced the end of Quantitative Tightening (QT) set for late 2025, impacting BTC, ETH, and high-beta assets. This decision follows an assessment of inflation and labor data, guiding market expectations for future rate cuts.
Key figures include Jerome Powell, who leads monetary policy, and the Federal Reserve System. This shifts focus on policy communications regarding balance sheet management and rate adjustments, profoundly impacting financial markets and crypto assets. Jerome Powell, Chair, Federal Reserve – “The end of QT means the Fed stops shrinking its balance sheet, removing a structural drain on USD liquidity and easing pressure on risk assets like BTC and tech equities.”
The immediate effects include shifts in liquidity dynamics as the Fed’s QT halt reduces drainage on USD liquidity. This development enhances market conditions for tech equities and cryptocurrencies, influencing investor risk appetite globally.
Financial implications involve potential rate cut expectations affecting macro liquidity landscapes. Increased liquidity availability positively influences BTC and ETH.
Insights suggest increased focus on US macro data, impacting global financial trends and crypto sentiment. Investor strategies may shift based on anticipated Fed policy outcomes and liquidity conditions.
Quantitative easing in prior years led to notable BTC bull runs and DeFi growth. Historical trends may guide investors’ expectations regarding potential crypto rallies.
Market analysts underscore the importance of these developments.
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