Bitcoin price unlikely to breach $77k threshold anytime soon. Now, analysts are seeing a pronounced shift in market sentiment as they forecast the end of quantitative tightening (QT). Comments from the Federal Reserve signaling a potential slowdown in QT have sparked a wave of optimism in the crypto market.
The Crypto Fear & Greed Index has moved into “Neutral” territory, currently at 49. This makes its exit from the “Fear” zone, where it sat since February 26. This transition from bleak desperation to cautious hope reflects newfound confidence among investors.
BitMEX co-founder Arthur Hayes teased catalysts that would continue to pump up the market.
The next thing we need to get bulled up for realz is either SLR exemption and or a restart of QE." - Arthur Hayes
The Fed’s intended role has clearly shifted to being more active in support of businesses and markets. This gives them lots of room to reduce monetary policy. According to Real Vision chief crypto analyst Jamie Coutts, QT is “effectively dead.” This means a more benign environment for risk assets.
Axie Infinity co-founder Jeff "JiHo" Zirlin echoed this sentiment.
great for both crypto and equity markets - Jeff “JiHo” Zirlin
After the US dollar’s recent decline helped soothe treasury volatility, this development would provide a positive liquidity-enhancing jolt. Bitcoin has taken the news pretty well, up 3.53% over the last week. But it’s still down almost 22% from its January $109,000 all-time highs.
