Everyone holding altcoin portfolios waiting for QE may be waiting much longer than they think.
“Where is QE?”
QE (quantitative easing) is an emergency measure to stimulate a weakened economy.
QE is initiated when:
1) The economy is in recession, and GDP is falling.
2) Inflation is low.
3) A financial crisis occurs.
4) Unemployment is high.
5) Interest rates are already at the bottom.
Current situation:
1) There is no recession.
2) Inflation is "stuck" at around 3%.
3) The stock market and Bitcoin are near historical highs.
4) Unemployment is at 4% and decreasing.
5) The Fed has not yet completed the rate-cutting cycle, with at least two more cuts ahead.
Note when QE begins (blue on the chart):
1) After a stock market decline (black chart).
2) When the Fed has fully completed the rate-cutting cycle (red chart).
3) When unemployment is high (green).
Conclusion: there are simply no conditions for QE right now.