The post Fed Chair Jerome Powell Signals End of the QT; Bitcoin Price Rebounds appeared first on Coinpedia Fintech News
Amid the ongoing shutdown of the United States government, which has resulted in a lack of key economic data, the Federal Reserve has been a key source of market outlook. On Tuesday, the Fed chair Jerome Powell, during the National Association for Business Economics Annual meeting in Philadelphia, noted that Quantitative Easing (QE) is set to begin in the coming months.
“We may be approaching the end of our balance sheet contraction in the coming months,” Powell noted.
According to Powell, the market outlook has not changed much since the Fed’s September meeting, thus signaling more rate cuts ahead. However, Powell warned that persistent tariffs have pushed up prices amid a struggling labor market.
Bitcoin Price Rebounds Amid Market Uncertainty
After a historic deleveraging event last week, which wiped out around $20 billion, the Bitcoin (BTC) price has led the wider crypto market in a mild rebound. According to market aggregate data from TradingView, Bitcoin price gained as much as 3% after the announcement of QT ending by Fed Chair Powell.
The flagship coin has found a robust support level around $110k, having retested it three times in the four-hour time frame, coupled with a bullish divergence of the Relative Strength Index (RSI).
Top Reasons Bulls Will Gain Control
The macro outlook for Bitcoin remains bullish despite the midterm choppy market. According to on-chain data analysis from CryptoQuant, Bitcoin whales have been aggressively accumulating in the recent past to record highs.
Capital rotation from gold to Bitcoin is expected to escalate as the former hovers in overbought levels in the higher timeframes. The upcoming Fed’s QE and rate cuts will further enhance Bitcoin’s macro bullish outlook.
