Part 5/8:
Reflecting on past market cycles, particularly how Ethereum fared against Bitcoin, one can trace how QT changes influenced the broader crypto market. In the last cycle, when the FED transitioned from QT to quantitative easing (QE), ETH/BTC pairs began to rally. The concern among investors now pertains to whether a similar narrative will unfold in the current economic climate.
The critical consideration here is how QT and QE affect price movements differently across various asset classes. Not only should investors monitor Bitcoin’s price action, but they should also evaluate how altcoins respond to changes in the monetary policy framework. There’s a chance that altcoins, despite their recent rallies, may continue to feel pressure if the FED doesn’t swiftly engage in QE after stopping QT.