Federal Reserve's Shift to Quantitative Easing Sparks Optimism in Crypto Markets

According to PANews, the financial markets anticipate a shift by the Federal Reserve from quantitative tightening (QT) to quantitative easing (QE), a move expected to inject liquidity into the markets. The cryptocurrency sector remains optimistic about QE, recalling the previous cycle that saw Bitcoin surge by 1000% between March 2020 and November 2021. Despite the positive sentiment, some analysts caution that quantitative tightening is still ongoing, albeit at a slower pace. Benjamin Cowen, CEO of crypto research firm IntoTheCryptoVerse, noted that QT has not 'essentially ended' as of April 1. He highlighted that $35 billion in mortgage-backed securities continue to mature monthly, with the Federal Reserve reducing the QT scale from $60 billion to $40 billion per month. As of the time of reporting, Bitcoin is trading above $87,000, with its market capitalization rising to $1.735 trillion.