- Fed Stoel Powell fired QUantitative relaxationStrengthening the dedication to continuous quantitative tightening.
- Bitcoin -Dominance can persist, unless the monetary policy in Q2 2025 is shifting.
The long -awaited meeting of the Federal Reserve, which is expected to offer economic lighting, has given a new blow to market optimism.
Jerome Powell’s daring move
In his testimony on 11 February, FED chairman Jerome Powell rejected the possibility of renewed quantitative relaxation (QE), and emphasized that such measures are only considered when the interest rates are zero.
He further strengthened the dedication of the Central Bank for constant quantitative tightening (QT), indicating that every policy shift remains far away.
This attitude has aroused in an intense debate within the crypto community, where some see it as a necessary movement for economic stability, while others fear [BTC] Next big rally.
Community responds
For example Macro analyst Alex Krüger Posted on x repeated Powell’s position and said,
“We are older of QE – some people had to hear this.”
When, however, contradicted by a X (formerly Twitter) user that noticed,
“No need for QE only for the termination of QT.”
Krüger answered proverb,
“A few more months to go for that.”
Following similar sentiments, Felix JauvinAdd the host of the podcast on the margin,
“In my opinion, we enter an economic Golden Age and are less dependent on monetary dominance to keep things together. Again, this is a good thing! “
Based on the comments, many believe that both the broader financial market and the crypto sector are ready for growth.
Crypto analyst Kevin offered a contrasting perspective when he pointed out,
“We don’t need QE, but we have never seen a macro cycle top in #BTC Dominance in his era of relevance with the #altcoins market at a time when QT actively occurs.”
Is Bitcoin Bull running around the corner?
Kelvin suggested that historically, Bitcoin’s dominance about the cryptomarket never peaked during a period of QT. This phase occurs when central banks limit liquidity by selling assets or high interest rates.
Unless there is a shift in monetary policy, the dominance of the BTC market could continue its lateral process.
Analysts predict a possible shift in Q2, indicating that macro -economic factors can influence market trends during this period.
However, if Fed Chair Powell maintains its current position on the extension of QT or keeping the interest rates increased, predictions of an imminent “altcoin season” can remain unfounded.
THis scenario would dispute the expectations of a broad altcoin, which reinforces the prevailing dominance of Bitcoin within the digital assets space.
Current market scenario
This event coincided with the half -yearly monetary report from Powell to the US Congress on 12 February. He again confirmed that the Federal Reserve “was in a hurry to change its policy position.”
Moreover, it coincided with a remarkable revival in the wider crypto market. The global market capitalization achieved $ 3.19 trillion, which marked an increase of 1.35% in the last day.
BTC, the leading cryptocurrency, reflected this trend and traded at $ 96.009.53, at the time of press. Bitcoin had a modest profit of 0.04%, in the last 24 hours, according to Mint market cap.
These figures reflect the resilience of the market despite constant macro -economic uncertainties, which reinforces the dominance of Bitcoin in the midst of shifting monetary policy.
