Quantitative Tightening

Analysts suggest the biggest risk to Bitcoin’s price is not the size of the Fed’s balance sheet, but the significant lag in how monetary policy affects the economy. This delay could create short-term headwinds for crypto before potentially fueling a longer-term rally.

Arthur Hayes predicts that the recent low at $80,000 was the bottom for bitcoin, citing macroeconomic factors such as the end of quantitative tightening and increased bank lending. Meanwhile, the Fed is expected to cut rates, which could boost the crypto market.