Bitcoin’s Fortunes: A Most Unexpected Turn of Events! 💰😲

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In the wake of the recent assembly of the Federal Open Market Committee, the price of Bitcoin has experienced a most delightful ascent of 3.5%. This fortunate rise follows the decision of the esteemed US Federal Reserve to maintain interest rates at a rather unremarkable 4.5%. Yet, our dear Arthur Hayes, a gentleman of considerable foresight, has ventured to predict that the Fed shall resume its rate cuts come the first of April, a development that may indeed augur well for the fortunes of Bitcoin and the broader realm of cryptocurrency.

Mr. Hayes Foresees a Resurgence in Bitcoin’s Value and Fed Rate Adjustments

In his reflections upon the market’s reaction post-FOMC meeting, Mr. Hayes, the illustrious CEO of BitMEX, has posited that the recent decline of Bitcoin to the sum of $77,000 may well signify its nadir. He has observed that the conclusion of quantitative tightening (QT) by the first of April, coupled with the potential for a bullish upturn, might be spurred by either an exemption to the Supplementary Leverage Ratio (SLR) or the revival of quantitative easing (QE). How thrilling! 🎉

Moreover, Mr. Hayes has suggested that the ongoing correction within the US equity market may persist, thereby compelling the venerable Federal Reserve Chair, Mr. Jerome Powell, to adopt policies more amenable to the current administration. “Remain agile and well-capitalized,” he wisely advised. In a rather spirited post on Truth Social, the ever-controversial President Donald Trump declared:

The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs begin to ease their way into the economy. Do the right thing. April 2nd is Liberation Day in America!!!

The Dance of Bitcoin and the M2 Money Supply

Following the aforementioned FOMC meeting, Bitcoin has staged a most impressive recovery, leaping to a commendable $87,000. The popular analyst, IncomeSharks, has noted that Bitcoin has rebounded from its supertrend support. However, for Bitcoin to continue its upward trajectory, it must triumphantly close above the diagonal resistance of $86,351. A rather tall order, one might say! 😅

Furthermore, the price movements of Bitcoin may soon align with the M2 money supply, which has been on a rather upward trend of late. It is anticipated that M2 shall continue to grow for various reasons, and its strong correlation with Bitcoin, combined with a leverage factor of 9, suggests that even the slightest alterations in liquidity could wield a significant influence on Bitcoin’s price. The predictions indicate a potential rise to $90,000 by mid-April. How delightful! 🤑

For instance, a mere 10% increase in liquidity could result in a doubling of Bitcoin’s price. Meanwhile, inflows into spot Bitcoin ETFs have resumed, with BlackRock’s IBIT leading the charge. A most intriguing development indeed!

In addition to Bitcoin’s fortunes, the altcoins have also exhibited remarkable resilience following the FOMC meeting. Notable altcoins such as Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) have experienced a commendable bounce of 4-10% within the last 24 hours. How splendid! 🎈

Shall the US Fed Conclude QT in April?

As the ramifications of the Trump trade war intensify, placing the American economy in a state of languor, certain market analysts speculate that the Fed may be the first to yield. During a recent address to the media, Fed Chair Jerome Powell remarked: “The median participant projects that the appropriate level of the Fed Funds Rate will be 3.9% at the end of this year and 3.4% at the end of next year, unchanged from December.”

In response to Mr. Hayes, the esteemed crypto analyst Benjamin Cowen has refuted the notion that quantitative tightening (QT) shall conclude by the first of April. He clarified that while QT has indeed been adjusted, it remains far from its conclusion.

“QT is not ‘basically over’ on April 1,” Mr. Cowen asserted. He elucidated that the Federal Reserve continues to reduce its balance sheet by $35 billion per month through mortgage-backed securities. Although the pace of QT has decelerated from $60 billion per month to

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2025-03-20 08:17