Bitcoin Braces for Fed Balance-Sheet Shift as Liquidity Cycle Turns

The Federal Reserve's decision to halt its quantitative tightening has positioned the crypto markets at a critical juncture, raising speculation about a potential Bitcoin bull run or a repeat of the 2019 post-policy slump. Unlike in 2019, when interest rates were lower, today's rates at approximately 4% may provide significant strength to market movements once reduction occurs. Analysts point out that while short-term volatility might arise, long-term macroeconomic conditions could pave the way for Bitcoin to reach new heights, potentially hitting $200,000 by Q3 2026. Factors such as the global political climate, particularly U.S.-China trade tensions, along with institutional demand for Bitcoin, suggest a complex but hopeful landscape for investors. Although the crypto market experiences a cautious stance amid historical parallels, the ongoing demand from institutions indicates a more resilient future for Bitcoin, distinguishing the current phase from past market cycles.

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