Key Points
- Fed Chair Jerome Powell dismisses the possibility of renewed Quantitative Easing (QE), reinforcing commitment to ongoing Quantitative Tightening (QT).
- Bitcoin’s dominance in the crypto market may persist unless there’s a shift in monetary policy in Q2 2025.
Fed Chair Jerome Powell has dismissed the possibility of renewed Quantitative Easing (QE).
He made this statement during his testimony on the 11th of February, emphasizing that such measures are only considered when interest rates are at zero.
Powell’s Monetary Stance
Powell further reinforced the central bank’s commitment to ongoing Quantitative Tightening (QT), signaling that any policy shift remains distant.
This stance sparked intense debate within the crypto community, with some seeing it as a necessary move for economic stability, while others fear it could delay Bitcoin’s next major rally.
Macro analyst Alex Krüger, for instance, reiterated Powell’s stance and said, “We are ages away from QE – some people needed to hear this.”
However, when contradicted by an X (formerly Twitter) user who noted, “No need for QE only for discontinuation of QT,” Krüger replied saying, “A few more months to go for that.”
Community Reactions and Market Predictions
Felix Jauvin, the host of the On the Margin podcast, added, “We are entering an economic golden age in my opinion 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 poised for growth.
Crypto analyst Kevin offered a contrasting perspective, pointing out, “We do not need QE but we have also never seen a macro cycle top in BTC Dominance in its era of relevancy with the Altcoins market in a time where QT was actively occurring.”
Kelvin suggested that historically, Bitcoin’s dominance over the crypto market has never peaked during a period of QT. This phase occurs when central banks restrict liquidity through asset sales or high interest rates.
Analysts predict a potential shift in Q2, indicating macroeconomic factors might influence market trends during this period.
However, if Powell maintains his current stance on prolonging QT or keeping interest rates elevated, predictions of an imminent “altcoin season” may remain unfounded.
This scenario would challenge expectations of a broad altcoin surge, reinforcing Bitcoin’s prevailing dominance within the digital asset space.
This event coincided with Powell’s semi-annual monetary report to the U.S. Congress on the 12th of February. He reaffirmed that the Federal Reserve was “in a hurry to change its policy stance.”
Additionally, it coincided with a notable upswing in the broader crypto market. The global market capitalization reached $3.19 trillion, marking a 1.35% increase over the past day.
BTC, the leading cryptocurrency, mirrored this trend, trading at $96,009.53, at press time. Bitcoin had a modest gain of 0.04%, in the last 24 hours, according to CoinMarketCap.
These figures reflect the market’s resilience despite ongoing macroeconomic uncertainties, reinforcing Bitcoin’s dominance amid shifting monetary policies.