Key Points
- Fed Chair Jerome Powell dismisses the possibility of renewed Quantitative Easing (QE), reinforcing commitment to ongoing Quantitative Tightening (QT).
- Bitcoin’s market dominance may continue unless there’s a shift in monetary policy in Q2 2025.
Fed Chair Jerome Powell has caused a stir in the financial community during the highly anticipated Federal Reserve meeting. The expectation of economic relief was dashed as Powell dismissed the idea of renewed Quantitative Easing (QE).
Jerome Powell’s Monetary Stance
Powell emphasized that QE measures are only considered when interest rates are at zero. He further cemented the central bank’s commitment to ongoing Quantitative Tightening (QT), indicating a policy shift is not on the horizon. This stance has sparked a heated debate within the crypto community.
Some view Powell’s decision as a necessary step for economic stability, while others worry it could postpone the next major rally of Bitcoin (BTC). Macro analyst Alex Krüger, for instance, echoed Powell’s stance, stating that we are far from QE. This was met with mixed reactions from the community.
Impact on Bitcoin and Crypto Market
Crypto analyst Kevin pointed out that Bitcoin’s dominance over the crypto market has never peaked during a period of QT. This phase is when central banks limit liquidity through asset sales or high interest rates. If monetary policy remains unchanged, Bitcoin’s market dominance may continue its current trajectory.
Predictions suggest a potential shift in Q2, indicating macroeconomic factors might influence market trends during this period. However, if Powell maintains his stance on prolonging QT or keeping interest rates high, the anticipated “altcoin season” may not materialize. This would challenge expectations of a broad altcoin surge, reinforcing Bitcoin’s dominance within the digital asset space.
Powell’s monetary report to the U.S. Congress coincided with an upswing in the broader crypto market. The global market capitalization reached $3.19 trillion, marking a 1.35% increase over the past day. Bitcoin (BTC), the leading cryptocurrency, mirrored this trend, trading at $96,009.53, at press time. These figures showcase the market’s resilience despite ongoing macroeconomic uncertainties.
