Quick Takeaways
- The Fed may terminate Quantitative Tightening (QT) as soon as next week.
- Analysts anticipate new liquidity could spark an altcoin and Bitcoin rally.
- Bitcoin excitability hits record depression, signaling a potential breakout.
Fed’s QT Decision Could Ignite a Crypto Rally
The crypto market is watching as the Federal Reserve prepares for its next policy meeting. Traders nowadays believe the Fed may end Quantitative Tightening (QT) as early as the following workweek, a move that could inject fresh liquidity into financial markets.
Analysts suggest that this possible insurance policy shift might be the catalyst for a major crypto rally, with altcoins positioned to surge if easing begins.
Analysts Forecast QE Could Fuel Explosive Growth
Crypto analyst Crypto Rover sparked speculation after sharing data suggesting the Fed could soon halt QT. He noted that a return to Quantitative Easing (QE) would likely drive massive capital inflows into digital assets.
“Once QE starts… altcoins will explode,” he said, pointing to the historic correlation between Fed easing cycles and crypto bull runs. This trend has repeated across previous market recoveries, where renewed liquidity boosted risk assets like Bitcoin and Ethereum.
Bitcoin Volatility Near Historic Lows
Data from CryptoQuant shows Bitcoin’s volatility has dropped sharply. On October 21, daily price swings fell to just 2%, and on October 22, only 3%. Analyst Maartunn called this “the quiet before the storm,” noting that such calm periods often precede sharp market moves.
Bitcoin is currently consolidating near $111 600, holding steady amid speculation of a policy pivot. Historically, transitions from tightening to easing have set up the stage for strong upward trends in both Bitcoin and altcoins.
Banks Expect QT to End Soon
Major financial institutions like JPMorgan and Goldman Sachs now expect the Fed to announce an end to QT in its upcoming meeting. Analysts say such a decision could reintroduce liquidity into both traditional and digital asset markets.
Past transitions from QT to QE have fueled sharp rallies in crypto, with liquidity-driven phases often marking the start of bull cycles.
Altcoins Poised for Breakout
Market strategist Michaël van de Poppe believes Bitcoin could extend to a new fourth dimension in November, potentially driven by Ethereum hitting $, 000 and altcoins doubling in value.
He notices that the market’s steady climb and tightening volatility are manifestations of other aggregations ahead of a bullish Fed signal.
If the Fed confirms a shift to easing, analysts expect an upsurge in institutional requirements and capital inflows, setting the stage for another knock-down crypto bull’s eye run.
What’s Next for Crypto Markets
As the Fed meeting approaches, investors are preparing for a potential turning point. A pause in tightening or a shift toward QE could unleash one of 2025’s most significant crypto rallies, particularly in altcoins.
For now, dealers hold back, but a policy pivot next week could mark the beginning of a New liquidity cycle and the adjacent leg of the bull market.
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This article is for educational design only and does not constitute financial advice. Always conduct your own inquiry or consult a licensed financial advisor before investing.
