A generally followed crypto analyst predicts higher prices for crypto-assets, because he expects the Federal Reserve to put an end to the monetary policy of anti-inflation.
In a new thread, the pseudonymous crypto analyst Pentoshi tells His 861,300 followers on the social media platform X that we almost see the end of the quantitative tightening (QT), which is policy that reduces the balance of the FED and reducing the delivery of money in circulation.
The trader quotes data from the decentralized forecast platform Polymarket, which shows that 100% of users believe that the FED will terminate QT by May of this year.
The termination of QT is usually considered bullish for risk assets such as Bitcoin (BTC) and altcoins because the movement indicates the end of tight monetary conditions.
However, Pentoshi warns investors to be ‘careful’, because both the S&P 500 and the TopCrypto assets have seen growth in recent years that seems untenable.
‘I think we’ll get close [the] End of QT with polymarket who now praise as a certain thing in a Kansee, while before they were much lower opportunities. As mentioned earlier, it seems that Trump would force it. I don’t think QT automatically means that it is an easy mode.
I think that mode clearly has generally disappeared in the way people think about it (2017/2021). Although the prices are much lower, I think it’s best to be careful optimistic. Many things have fallen considerably and hopefully there will be a considerable average reversal. Markets in general are Hard Gally. And assets were probably a bit overvalued.
SPX that goes 25% back to back years would have low growth or negative this year, because it was not a sustainable pace. BTC went from $ 16,000 to $ 108,000, Sol [from] $ 8 to $ 300. Carefully optimistic. [Be] Patient for every time of capitulation, so often, after large trends, we eventually get longer lateral periods and less volatility as the market finds balance. “
While pentoshi tactically bullish on stocks and crypto flip, he is warns Investors that every rally will probably be short -lived.
“I think there will currently be a lower high. People underestimate the time aspect. “
At the time of writing, Bitcoin acts for $ 83,248.
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