In his testimony on Tuesday, the chairman of the federal reserve Jerome Powell suppressed hopes for the next round of quantitative relief (QE), repeating that “QE is a tool that we use only when the rates are already at zero” and that the Fed remains “will leave far away from itself From the end of QT. “This attitude questions the view that quickly stopping aggressive facilitation can appear with bitcoins and the entire cryptographic market, as in previous cycles.

End of bull run for Bitcoin and Altcoins?

Makro Alex Krüger analyst Published WX, that “we are centuries from QE”, emphasizing that some market participants had to clearly hear Powell’s position. Another commentator, Tagoo, noticed that “there is no need for QE, only to stop QT”, he prompted Krüger to answer that QT may take a few more months. “

Felix Jauvin, host of the podcast on the margin, commented Via X: “If qe will soon be dreamers, I hope you just hear what Powell said:” QE is a tool that we employ only when the rates are already zero. ” You don’t want zero rates and QE. This means that in the meantime a lot of pain must happen. QE does not come to save excessive Alt bags in the near future. “

Javin believes that the US economy has changed from the period of stagnation to a more fundamental growth phase. According to him: “We still see bull markets and an offer of risk assets without these monetary tricks”, because he considers it a healthier environment led by productivity-such, which he calls “golden economic age”.

Dan Mcardle reminded observers that the markets could remain risky “with a decent economy and some credit expansion.” He warned the cryptocurrency community against anchoring expectations only on zero pace and QE rules, which suggests that the constant economy can continue to support Bitcoin.

Julien Bittel, head of Macro Research at Global Macro Investor (GMI), framed Powell’s comments in “The Everything Code”, claiming that QE is only one part of the global image of liquidity. While the Fed may not change QE soon, Bittel has indicated that other factors, such as the activities of the Chinese People’s Bank, private credit creation or changes in the treasury general account, can also introduce liquidity to markets. “Fed has other tools and cooperate with the treasure since Covid, to smooth the influence of QT by TGA and RRP,” noted Bittel.

He reminded traders that “it was not only the Fed in this equation” and noticed that Chinese rates heading towards zero raise the possibility of introducing some form of QE. “In 2017, the Fed was a small player in a liquidity game. In fact, the Fed had QT and wandering rates all year round, but the risk assets still bloom, and Bitcoin made 23x after a sharp, but short correction of 28% in January, “he added.

Kevin’s cryptographic analyst also claims that Bitcoin may not only require QE. He pointed out, however, that “we have never seen the top of the macro cycle in the domination of BTC” during an busy QT, raising doubts as to the probability of a solid Altcoin season in the near future. “I still think that my analysis once tells me in Q2, it will end, but if we take Powell on the nominal, then the ringing of the Altcoins season every day for the last 2 years will look more lost and bad and bad than they are and were”, Kevin was found.

During the BTC press it traded at USD 96 334.

A distinguished painting with Shutterstock, chart from TradingView.com