Pentoshi: Fed’s monetary policy change will trigger the growth of the crypto market

A well-known cryptocurrency analyst under the pseudonym Pentoshi predicts the growth of the digital asset market amid expectations of a change in the US Federal Reserve’s monetary policy. In his opinion, the end of the Quantitative Tightening (QT) program, which limited the amount of money in circulation, may signal a new rally in the market for risky assets, including Bitcoin BTC $82,508.91 Bitcoin 0.32% Market capitalization $1.64 trillion VOL. 24 hours $0.74 billion and altcoins.

Pentoshi refers to data from the decentralized forecasting platform Polymarket, where 100% of participants believe that the Fed will end QT by May of this year. He notes that such a scenario is looking more and more likely, especially given the political context — the likely pressure from Donald Trump may accelerate this decision.

However, the analyst urges investors to be careful and not to expect «easy money» as it was in 2017 or 2021. According to him, the current market has already risen strongly, and many assets are facing a correction. Pentoshi recalls that the S&P 500 has shown growth of 25% for two years in a row, which is an unsustainable pace. Bitcoin has risen from $ 16,000 to $ 108,000, and Solana from $ 8 to $ 300. According to him, such growth rates cannot be maintained for long.

The analyst notes that even in the event of a short-term rally, one should expect long periods of sideways movement and reduced volatility while the market seeks a balance. He emphasizes that any increase is likely to end in a lower top, and investors often underestimate the time factor.

At the time of writing, Bitcoin was trading at $ 83,124. The expert advises to be cautiously optimistic and be prepared for the fact that a real breakthrough may take longer than many market players expect.