Potential Fed pivot has crypto and macro analysts ultra-bullish on Bitcoin’s price prospects
Fidelity’s head of macro suggests that the end of the Fed’s quantitative tightening policy could be bullish for Bitcoin and gold. The United States Federal Reserve began its most aggressive quantitative tightening efforts in March 2022, raising benchmark Interest Rates in the year since from near-zero to 4.75% to 5% annually. While the central bank has successfully brought down inflation to some degree, the increasing Interest Rates are starting to cause cracks in the global banking industry. The market expects the Fed to end quantitative tightening and provide favorable liquidity conditions to avoid a global financial crisis as the banks begin to fail. The shift in the Fed’s policy should have significant implications for financial assets. Jurrien Timmer, the director of global macro at Fidelity, discussed the likely impact of the Fed’s dovish pivot on stocks, gold and Bitcoin. Market expects the Fed to put an end to interest rate hikes The Fed is largely expected to either maintain ...