The Fed Signals QE - What It Means for Bitcoin Long-Term

Honestly, I pay much more attention to things like this - meetings, law adoptions, elections, and so on. They set the trend more reliably than a bunch of rumors, fortune-telling on fund inflows and outflows, and other short-term factors that, in the end, no one knows how to interpret. That's one of the reasons why this channel doesn't have daily comments on every possible economic and crypto news.

So, the Fed cut rates and, right after barely finishing QT, announced what is essentially QE - albeit small in volume and a bit specific (buying short-term Treasuries). Either way, liquidity will stop shrinking, won't even stay at the previous level, but will increase. For risk assets (including crypto), this is definitely better than before. Plus, everyone already understands that in the near future, the Fed will be led by someone who will clearly lower rates even more. From all this, I conclude that we'll likely see Bitcoin at $100k+ in the foreseeable future within this cycle.

As for the duration of the current cycle - it's already starting to drag on, and thoughts creep in that maybe the cycles really are broken and this time we might get by without a 70%+ drawdown. For now, I'm chasing those thoughts away and sticking to my plan for BTC.

Originally posted on Telegram channel.