What the Fed’s Move Means for Bitcoin and Markets

Benjamin Cowen dives into the Federal Reserve’s decision to slow quantitative tightening (QT) and what it means for Bitcoin and the broader financial markets. While this is not a full policy shift, history suggests it could impact price trends.

1. The Fed’s QT Slowdown – What’s Changing?

🔹 Monthly Treasury reduction drops from 25 billion to 5 billion
🔹 Mortgage-backed securities (MBS) reductions remain at 35 billion
🔹 The Fed is extending its tightening cycle but at a slower pace

This move mirrors a similar slowdown in May 2024, which led to a short-term bounce in markets but did not mark a final pivot.

2. Will Bitcoin React the Same Way as 2024?

Cowen looks at historical trends:
📌 May 2024 QT slowdown led to an immediate rally followed by weakness a few weeks later
📌 Markets took one to two months before a sustained rally followed

If history repeats, Bitcoin could see a bounce now, but another dip might come in early April before a more durable uptrend.

3. Bitcoin’s Key Levels to Watch

📌 87K CME gap is a key downside target
📌 90K bull market support band must be reclaimed for trend strength
📌 2024 highs between 82K and 84K serve as critical support for the uptrend

4. Altcoins and Bitcoin Dominance – Still No Breakout

Altcoin-BTC pairs remain weak, just like they did last year when the Fed slowed QT. The trend suggests:
✅ Short-term bounces are possible
🚫 But dominance is still favoring Bitcoin

5. What’s Next? The Fed’s “Slow for Longer” Policy

The Fed’s move does not mean an immediate pivot, just an extended runway for QT. Markets are watching:
🔹 April macro events including tariff policies and labor market data
🔹 Inflation reports that will impact future rate cuts
🔹 Bank of Japan rate decision in July that could shake things up

Final Take:

Bitcoin may rally short term, but do not be surprised if weakness returns before a real breakout. History suggests patience is key. Watch for a mid-to-late spring reversal.

CryptoRUs- [URGENT] Bitcoin and Markets Will Bottom When This Happens (19.03.2025 Summary)
Previous Post
CryptoRUs- [URGENT] Bitcoin and Markets Will Bottom When This Happens (19.03.2025 Summary)