Bitcoin Bulls Rejoice as Fed Slows Quantitative Tightening (QT)—Rally Ahead?
- Arthur Hayes believes Bitcoin’s $77K dip might be its lowest, citing Fed’s QT slowdown.
- Analysts expect liquidity injection to benefit BTC, possibly sparking a strong rally.
- Key resistance at $97K; breaking it could push it to new all-time highs.
Bitcoin’s recent dip near $77,000 could be the lowest point it sees for a while, according to BitMEX co-founder Arthur Hayes. His Optimism follows the Federal Reserve’s decision to slow down its quantitative tightening (QT) program, a move that could boost liquidity in risk assets like BTC.
On March 10, Bitcoin briefly touched the $77,000 mark, its lowest since November. Then, on March 19, the Fed announced a significant shift—starting in April, it will cut its monthly Treasury sell-off cap from $25 billion to just $5 billion. This move reduces pressure on liquidity, creating a more favorable environment for markets.
“Was BTC $77K the bottom, prob,” Hayes wrote on X on March 20. He declared that QT is “basically over,” a sentiment that aligns with a broader view among market analysts. He also pointed out that the next bullish trigger could be a return to quantitative easing (QE) or an exemption for the Supplementary Leverage Ratio (SLR), a policy that previously allowed banks to exclude U.S. Treasury holdings from leverage calculations.
JAYPOW delivered, QT basically over Apr 1. The next thing we need to get bulled up for realz is either SLR exemption and or a restart of QE.
Was $BTC $77k the bottom, prob. But stonks prob have more pain left to fully convert Jay to team Trump so stay nimble and cashed up.
Liquidity Surge Could Favor Bitcoin
Real Vision’s chief crypto analyst Jamie Coutts supported Hayes’ outlook, stating on March 19 that “QT is effectively dead.” He highlighted that “treasury volatility” has stabilized following the U.S. dollar’s recent dip, a key sign of improving liquidity conditions.
Adding to the discussion, AI agent Mlion.ai emphasized that If QT truly ends, crypto markets could experience a massive liquidity injection, creating favorable conditions for Bitcoin’s next move.
Bitcoin venture capitalist Mark Moss echoed this optimism, stating, “The dam is going to break.” Meanwhile, Spencer Hakimian, founder of Tolou Capital Management, pointed out that the Fed’s balance sheet is set to start growing again, a development he sees as “good for risk assets.” Crypto Rover joined the wave of optimism, predicting, “The best months ever for Bitcoin are coming.”
Bitcoin Key Price Levels to Watch
Bitcoin’s technical outlook supports this optimism, but resistance remains. According to Stockmoney Lizards, the cryptocurrency recently bounced off the bull market support band, hinting at a potential breakout. However, the analyst warned that BTC is still in a corrective phase, facing key resistance points.
The primary level to watch is the Point of Control (POC) at $97,000, a significant resistance zone with heavy trading volume. If Bitcoin successfully breaks this level, it could soar to new all-time highs. On the downside, investors are eyeing buying opportunities below $80,000 as potential entry points.
According to Stockmoney Bitcoin’s price structure suggests that breaking above a key descending resistance line could ignite a strong rally. If it fails, further consolidation may follow. Still, given the Fed’s policy shift, market sentiment remains hopeful that Bitcoin is gearing up for another major move.
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