Bitcoin BTC $94,301.63 Bitcoin -0.44% Market capitalization $1.87 trillion VOL. 24 hours $1.92 billion is unlikely to fall back to $ 77,000 in the near future, according to Arthur Hayes, co-founder of BitMEX. According to him, the signal for this was the decision of the US Federal Reserve to slow down the curtailment of the quantitative tapering program (QT), which opens up new prospects for risky asset markets, including cryptocurrencies.
on March 10, the price of bitcoin briefly dropped to $ 77,000, the lowest since November. However, on March 19, the Fed announced a slowdown in government bond sales: starting in April, the sales limit will be reduced from $ 25 billion to $ 5 billion per month. According to Hayes, this effectively means the end of the tight monetary policy phase and creates conditions for the crypto market to resume growth.
Analysts note that the end of QT could ease liquidity pressure and have a positive impact on bitcoin and other risky assets. Mr. Hayes also suggests that the next step could be either the release of banks from regulatory restrictions or even a return to quantitative easing (QE).
Other market players are also optimistic. Jamie Coots, chief crypto analyst at Real Vision, said that QT is «effectively dead,» and Jeff Zirlin, co-founder of Axie Infinity, emphasized that the slowdown in the Fed’s program wind-down is good news for both the crypto and stock markets.
Against this backdrop, the overall mood in the crypto market has improved markedly. The Fear and Greed Index has moved into the «neutral» zone, rising to 49 after a long stay in the «fear» zone. Infinex founder Kane Warwick emphasizes that bitcoin’s current decline of almost 22% from its historical high is just a «normal correction in the middle of a bull cycle,» and the market has every chance of further growth by the end of the year.