QE: The Main Trigger of a More Powerful Crypto Bull Market

The period of quantitative easing (QE), during which central banks like the U.S. Federal Reserve lower interest rates and inject liquidity into the market, has proven to be a key catalyst for the surge in risk assets, including crypto.

According to information from BeInCrypto, analyst Miles Deutscher emphasized that the biggest rallies in Bitcoin and other risk assets occurred during QE periods.

From QE to QT: Impact on the Crypto Market

After the QE phase that fueled a crypto bull market, the Fed shifted to quantitative tightening (QT) to control inflation.

This policy involves reducing liquidity and raising interest rates, which has led to decreased investor interest in risk assets.

Awaiting the Return of QE

Although the crypto market has shown growth even without QE support, many analysts believe that the return of such policies would trigger an even more monumental bull market.

A slowing global economy could push central banks to reinstate QE, creating opportunities for another surge in crypto prices.

Conclusion

Loose monetary policies like QE play a crucial role in driving crypto bull markets.

Investors and market participants are now watching for signals of QE’s return as a major trigger for the next explosive rally in digital asset prices.