As the Federal Reserve gears up for its next policy decision, the key question weighing down crypto markets remains whether Chair Jerome Powell put an end to quantitative tightening.
What Crypto Investors Expect
According to a poll by crypto analyst Benjamin Cowen, 42% of respondents expect quantitative tightening (QT) to conclude, while 58% expect it to continue.
Crypto investors are paying close attention, given Bitcoin’s historical sensitivity to monetary policy shifts.
With the Fed having already cut interest rates by 100 basis points across three meetings, the debate now turns to whether further rate cuts or an end to QT is on the horizon.
Cowen himself sees potential for Bitcoin’s dominance rally to continue, further weighing on altcoin weakness.
A potential selloff, coinciding with an end to the Fed’s QT, could spark the long-awaited relief for an altcoin rally later in the year before macroeconomic data deteriorates.