The Polymark Sels
Betters On Polymarket believes that it is certain that the American Federal Reserve will end the quantum tightening program (QT) by May this year, a step many analysts say it can lead to the following leg of the Crypto Bull Market.
By March 14, the possibilities of the bet of Polymarket ended that the Federal Reserve ends with April 30, as it is still unchanged at the time of writing this report.
Bet, entitled “Will Fed End Qt before May?” It contains more than 6.2 million dollars in the cumulative trading volume.
Polymarket users set a 100 % probability that the Federal Reserve ends quantitatively in the coming months. source: Polymarket
Polymarket is a coding prediction market that allows Betters to bet on the events of the real world. She rose to the lead during the 2024 US presidential election session, as she expected Donald Trump’s rise.
The quantitative tightening is a monetary policy tool used by the Federal Reserve to extract funds from the economy by leaving bonds in its mature public budget. It is the opposite of quantitative mitigation or the expansion of the public budget that the central bank started after the 2008 financial crisis.
The current QT system at the Federal Reserve has been going on since June 2022 as a supplement to other inflation policies. In addition to raising interest rates in the short term, the Federal Reserve uses QT to raise long -term prices and deplete excess liquidity from the market.
Although the start of QT did not prevent shares and encryption prices from the assembly-these markets start from impressive growth-the bottleneck has become due to the recent total economic shocks caused by the Trump administration.
This was Propagate In 2022 by the great investment manager at Cambridge Associates, who said the negative side effects of QT will feel “something that breaks”:
“With the condensation of QT now, it appears that the risks it poses on the financial markets is low. However, the QT addition to what a difficult and volatile market environment may actually exacerbate the market conditions, which increases the risk that” something collapses “of transgression.”
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QT and Crypto
Crypto’s strong association with traditional assets category is exposed to severe volatility in February. By March, the S&P 500 was officially in the correction area – Bitcoin (BTC) decreased by approximately 30 % of its peak in January.
Many believe in the increasing belief that the federal reserve is ready to finish QT by many as a bullish stimulus, as more liquidity will eventually decrease to dangerous assets. In addition to price cuts in the second half of the year, there may be enough policy drivers to reflect the multiple direction in the Crypto market.
This public play book is supported by Benjamin Quinn encryption analyst, which is believed to be the end of QT will be followed by a wide march on the market.
source: Benjamin Quinn
Although the Federal Reserve did not confirm whether it will be subject to its QT program, minutes The meeting of the Federal Open Market Committee in January revealed that some officials were concerned about the public budget discounts that affect the debt debt debt to the government:
“With regard to the possibility of great fluctuations in reserves in the coming months related to the dynamic roof dynamics, many participants have noted that it may be appropriate to think about stopping or slowing the flow in the public budget until the solution of this event.”
Important policy changes in the Federal Reserve Consulting are picked up in the work cycle. As Cointelegraph recently reported, the USAII index (PMI) was in the expansion mode for two consecutive months after more than two years of shrinkage.
During the recent encryption markets, Bitcoin’s peak coincided with the top of the work cycle, and also expressed the manufacturing managers index.
The Bitcoin price shows a strong relationship with PMI ISM Manufacturing. source: TomsonMarkets
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