Quantitative Easing News

Warsh’s nomination as the new Fed chair has ignited US liquidity drought concerns, but his interest rate policy may hold the silver lining for risk asset recovery, according to market analysts.

BTC may fall to $70,000 and ETH to $2,400 if the Fed pauses rate cuts in the first quarter of 2026 and inflationary pressure persists.

ARK Invest expects another $300 billion in liquidity to return after the government shutdown, a development that may alleviate the “liquidity squeeze” affecting crypto and AI valuations.

Bitcoin fell 35% after the Fed ended QT in 2019 and began cutting rates, prompting fears that BTC may decline in the coming months.

Amid growing demand for safe-haven assets due to a US government shutdown, stimulus checks may bring an “additional liquidity catalyst,” market analysts told Cointelegraph.

France’s over $176 billion budget deficit may signal trillions of euros of newly printed money, potentially leading to more capital flowing into Bitcoin, according to Arthur Hayes.

The ballooning US deficit may lead to an increase in the money supply through quantitative easing, lining up a $132,000 Bitcoin price top in 2025.

“In my opinion, the tariffs are the representation of the uncertainty in the markets,” Michaël van de Poppe told Cointelegraph

BitMEX co-founder Arthur Hayes predicted Bitcoin could hit $250,000 in 2025 if the US Federal Reserve pivots to quantitative easing, but market bets remain conservative.

Bitcoin is more likely to soar to a new $110,000 all-time high on easing monetary policy than to stage another correction below $77,000.

While Bitcoin may experience a retracement to $70,000, this remains part of an organic “correction within a bull market,” Nansen analysts told Cointelegraph.

The government says the tax debt will be slashed by 50% in response to a prorated drop in cryptocurrency prices after the obligations were set.

Ether's supply across whale addresses has dropped consistently since March 2020, offset by greater retail interest.

A political deadlock looms over the U.S. debt ceiling and its potential impact on the price of Bitcoin, which is already up 75% in 2023.

The U.S. central bank’s liabilities may increase if more regional banks fail, creating an upside scenario for the price of Bitcoin.