List of Flash News about H.4.1 balance sheet
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10:48 |
Fed Rate Cuts and QE: 5 Trading Signals for a Crypto Liquidity Wave in BTC and ETH
According to @AltcoinGordon, imminent Federal Reserve rate cuts followed by a restart of quantitative easing could spark a powerful crypto bull run and require early positioning to avoid being sidelined, which is an opinion and not an official policy signal. source: @AltcoinGordon on X The latest published Federal Reserve projections outlined a gradual path of potential rate reductions and did not announce QE, so traders should anchor plans to official FOMC statements and projections rather than assumptions. source: Federal Reserve Board, FOMC Summary of Economic Projections June 2024; Federal Reserve Board, balance sheet normalization communications 2022–2024 Historically, during the 2020–2021 QE phase, the Fed’s balance sheet expanded from roughly 4.2 trillion dollars to about 8.7 trillion dollars while BTC rose from around 7,000 dollars in January 2020 to about 69,000 dollars in November 2021, underscoring crypto’s sensitivity to liquidity. source: Federal Reserve Board H.4.1 statistical release; Yahoo Finance BTC-USD historical data To verify any shift toward QE, monitor the weekly H.4.1 release for sustained increases in securities holdings, which would indicate balance sheet expansion rather than ongoing runoff. source: Federal Reserve Board H.4.1 statistical release For rate-path confirmation, use the FOMC statement and Summary of Economic Projections at each meeting and cross-check market-implied probabilities via the CME FedWatch Tool as a real-time gauge. source: Federal Reserve Board FOMC statements and SEP; CME FedWatch Tool If the Fed formally signals easing, historical precedent suggests higher beta in BTC and ETH with stronger volumes and liquidity, whereas policy disappointment during the 2022–2023 tightening coincided with crypto drawdowns. source: Federal Reserve monetary policy communications 2020–2023; Yahoo Finance BTC-USD and ETH-USD historical data Risk management should assume QT may persist without a QE restart, which would keep systemic liquidity tighter than in 2020–2021 and cap upside for higher-beta altcoins relative to BTC and ETH. source: Federal Reserve Board balance sheet runoff communications 2022–2024; Federal Reserve Board H.4.1 statistical release |