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

The Federal Reserve's decision to halt its quantitative tightening program has put Bitcoin at a pivotal point as investors consider the potential impacts on the market. Unlike 2019, when similar policy shifts led to volatility, the current landscape features higher interest rates and increased institutional demand, suggesting a different outcome for Bitcoin this time. Analysts argue that these conditions could lead to significant capital flows towards Bitcoin and other risk assets. Key differences include a stronger macroeconomic environment influenced by ongoing geopolitical tensions like the U.S.-China trade war and a potential shift in leadership at the Fed that could accelerate rate cuts. Although some analysts predict possible short-term corrections, the overall sentiment remains bullish, with predictions suggesting Bitcoin could reach $200,000 by late 2026, contingent on favorable macroeconomic developments.

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