The probability that the Federal Reserve will end quantitative tightening before May has reached 100% on Polymarket, as of March 18th. Trading volume has exceeded $6.25 million.

This prediction indicates significant market sentiment despite the lack of official statements from the Fed regarding quantitative tightening policy changes.

Polymarket Confidence Soars: QT End Seen in May

Polymarket data reflects a collective market belief that the Fed will conclude its quantitative tightening (QT) policy before May 2025. With a trading volume exceeding $6.25 million, it highlights growing investor interest in potential monetary shifts.

Should the Fed halt QT, the immediate implications could involve increased market liquidity, potentially benefiting risk assets like Bitcoin. Key market players anticipate that such changes might influence broader financial markets significantly.

Michael Saylor, CEO of MicroStrategy, stated, "The potential end of QT could be a major catalyst for #Bitcoin. Increased liquidity in the system tends to flow into risk assets, and BTC stands to benefit significantly." - Cointelegraph

Implications of a Rapid QT Halt on Crypto Assets

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In 2019, the unexpected end of QT caused market volatility, forcing the Fed to step in with liquidity injections, a scenario investors watch for repeating.

Bitcoin is currently trading at $84,142, with a price movement noted within $84,142 to a slight increase. Market analysts observe this movement as part of a broader pattern, aligning with trends noted in previous similar financial environments.

Industry experts highlight that an early QT end could lead to greater liquidity in financial systems. This might boost assets like Bitcoin, as liquidity typically shifts into riskier classes. Analysts foresee potential regulatory adjustments might follow, adapting to new economic dynamics.