Is the Federal Reserve already moving towards QE?

Waiting for liquidity

Can the Bitcoin bull market continue? Some of the ingredients are there (the halving, the ETFs). The big question mark is about global liquidity.

When and how are the major central banks moving away from quantitative tightening? Is quantitative easing even going to make a comeback?

Most central banks take their cue from the Federal Reserve. So what the Federal Reserve will do for the rest of the year will set the tone for global liquidity.

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Is the Federal Reserve already moving towards QE?

The takeaway

The inflation problem is not solved. But it looks like the Federal Reserve is betting on a slowdown of the real economy that will keep wages in check and finally take care of inflation in the services sector.

The latest FOMC minutes reveal a Federal Reserve that is less hawkish and already planning ahead a tapering of the balance sheet reduction and some token rate cut this year.

For the Bitcoin market this is all that matters. Once the Federal Reserve takes the first step our of QT and towards the return of QE, global liquidity will start expanding again. 

Based on the latest data that would mean a big tailwind for crypto in Q4 2024.

Slower real growth in the US