🔥LAST🔥
THE LAST TIME QT ENDED, THE DOMINANCE OF #BITCOIN PLUMMETED AND ALTCOINS SOARED
👀Today, 01/12, the FED FINISHED the QT. Let's see what this means and if history could repeat itself
🔹Today the FED officially ended "Quantitative Tightening"
🔹That is, it stops reducing its balance
🔹It will maintain ample reserves (above $3T) to avoid financial tensions like in 2019
🔹This is considered a shift towards a more neutral policy
What is QT and why does it matter so much⁉️
▪️QT = Reduction of the FED's balance by selling bonds or letting them mature
▪️The goal is to remove liquidity and lower inflation
▪️Less liquidity = higher rates = less flow into risk assets
▪️Since June 2022, the balance has dropped by more than $2.5 TRILLION (From $9T to $6.5T currently)
And what can happen now⁉️
📍When the previous QT ended, BTC dominance fell and altcoins soared
📍But attention: the end of QT does not imply immediate injections
📍The balance may continue to fall for a few weeks until it reflects in liquidity
