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Will Bitcoin Rally as Fed Ends QT?


Bitcoin traders are turning their attention to this week’s Federal Open Market Committee (FOMC) meeting. Major banks are expecting a potential policy shift from the U.S. Federal Reserve.

Analyst See Bitcoin Breakout as Fed QT End Nears

On-chain analyst Maartunn observed that Bitcoin’s volatility has dropped sharply over recent days. Data from CryptoQuant shows Bitcoin’s intraday price movement narrowing to just 2% on October 21 and 3% on October 22.

Maartunn stated that the existing setup is a precursor to a storm. He explained that the minimal activity and weak momentum is because traders are waiting for any event that could influence the market massively.

The analyst observed that it is a ‘typical squeeze’, which occurs in advance of big market breaks. Analysts have also started to view the current setup as a major bottom signal, with some urging investors to sell gold and buy Bitcoin.

The periods of low volatility are usually followed by strong Bitcoin price uptrend, especially during periods where macroeconomic factors increase liquidity.

This view was also shared by market commentator Satoshi Stacker. According to Stacker, both JPMorgan and Goldman Sachs now predict that the Fed will announce the end of its Quantitative Tightening (QT) program this week. This action would also provide liquidity in financial markets, including crypto.

The market commentator provided a chart that correlated past QT phase with massive BTC price gains. He said that during the shifts from tightening to neutral and then easing by the Fed, the crypto markets have often responded positively.

Van de Poppe Sees New Bitcoin All-Time High in November

Bitcoin started the week with moderate gains, trading around $111,631, up 0.53% in 24 hours according to TradingView. The crypto asset has climbed 4.85% over the past week and remains up nearly 20% year to date.

The steady climb suggests that investors may already be positioning for the Fed’s potential shift in policy. Adding to the bullish sentiment, well-known crypto analyst Michaël van de Poppe said he expects Bitcoin to hit a new all-time high in November.

This view echoes Binance founder CZ’s recent prediction that Bitcoin will flip gold in market capitalization. Also, it reflects growing institutional confidence in the coin’s long-term strength.

He further estimated that Ethereum (ETH) price could reach $5,000, and altcoins could also increase twice in the same timeframe. In case the Fed affirm the stoppage of QT this week, it could confirm these bullish forecasts.





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