NEWSLETTER
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In his testimony on Tuesday, the president of the Federal Reserve, Jerome Powell, cushioned the hopes of another quantitative flexibility round (QE), reiterating that “that is a tool that we only use when the rates are already at zero” to finish qt “This position challenges the notion that a rapid pivot for aggressive flexibility could boost bitcoin and the entire cryptography market as it did in past cycles.
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Macro Analyst Alex Krüger <a target="_blank" href="https://x.com/krugermacro/status/1889364736338436099″ target=”_blank” rel=”nofollow”>aware In x that “we are old outside of QE”, emphasizing that some market participants needed to clearly listen to Powell's position. Another commentator, Tagoo, said that “there is no need for QE, only for the interruption of the QT”, which causes Krüger to respond that it can take “a few more months” so that the QT is reduced.
Felix Jauvin, the host of the podcast on the margin, <a target="_blank" href="https://x.com/fejau_inc/status/1889355613811122192″ target=”_blank” rel=”nofollow”>commented Via x: “For the one that will arrive soon, I hope they have heard what Powell said” that it is a tool that we only use when the rates are already at zero. “You do not want zero rates and that that means that it has to happen a lot pain in the interim.
Jauvin believes that the US economy has changed a period of stagnation to a more fundamental growth phase. According to him, “we can still see the upward markets and an offer in risk assets without these monetary plumbing tricks”, since he sees this as a healthier environment and led by productivity, one that he calls “a golden age economic “.
Dan Mcardle reminded followers that markets can remain at risk “with a decent economy and some credit expansion.” He warned the cryptographic community against anchor expectations only to zero interest rates policies, which suggests that a stable economy could still support bitcoin's advantage.
Julien Bittel, Chief of Macro Research from Global Macro Investor (GMI), <a target="_blank" href="https://x.com/BittelJulien/status/1889418501120561570″ target=”_blank” rel=”nofollow”>framing Powell's comments within “The Everything Code”, arguing that it is just a part of the global liquidity image. While the Fed could not pivot that soon, Bittel said that other factors, such as the actions of the Popular Bank of China, the creation of private credit or the changes in the general account of the Treasury, can also inject liquidity into the markets. “The Fed has other tools, and they have been working with the treasure since Covid to soften the QT impact through the TGA and the PVP,” Bittel said.
He reminded the merchants that “it is not just the Fed in this equation” and pointed out that the Chinese rates that are directed towards zero increase the possibility that China implies some form of QE. “In 2017, the Fed was a small player in the liquidity game. In fact, the Fed was making QT rates and hiking throughout the year, but the risk assets still flourished and bitcoin made 23 times after the strong but short correction of 28% in January, ”he added.
Kevin cryptographic analyst also argues that bitcoin may not strictly require that he will prosper. However, he pointed out that “we have not seen a Top macro cycle in the btc domain” during the active QT, throwing doubts about the probability of a solid Altcoin season in the short term. “I still think that my analysis tells me that at some point in the second quarter it will end, but if we take Powell to the nominal value, the people who call the Altcoins season every day during the last 2 years will continue to seem more lost and bad , then they have been and have been, “Kevin,” Kevin set.
At the time of publication, btc quoted at $ 96,334.
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