Access Restricted for EU Residents
You are attempting to access a website operated by an entity not regulated in the EU. Products and services on this website do not comply with EU laws or ESMA investor-protection standards.
As an EU resident, you cannot proceed to the offshore website.
Please continue on the EU-regulated website to ensure full regulatory protection.
Thursday Dec 4 2025 04:50
2 min
The Federal Reserve's recent announcement of ending Quantitative Tightening (QT) has sparked optimism in the cryptocurrency market. We've seen notable price increases in Bitcoin, Ethereum, and various altcoins. But is this rally the start of a new bull cycle, or just a temporary bounce in a bear market?
In 2019, after QT ended, the crypto market experienced a short-lived rally, but it soon slid into further decline until the start of Quantitative Easing (QE). Will this scenario repeat itself?
Today, the crypto market is significantly different from 2019. The market size has increased tenfold, and institutions are now the primary drivers instead of individual investors. Furthermore, the correlation between the crypto market and the US stock market has increased.
The crypto market appears to be following the movements of the US stock market. Therefore, merely ending QT may not be enough for a sustained recovery. What the market truly needs is Quantitative Easing (QE).
Despite expectations of QE starting, we must recognize that the crypto market is no longer the primary driver in the market. The emergence of Artificial Intelligence (AI) is capturing much of the attention and resources. This places a significant question mark on the future of the crypto market.
In short, we should be wary of excessive optimism or excessive pessimism. Ending QT is not necessarily the beginning of a new bull cycle. Quantitative Easing, and developments in other markets like AI, will play a crucial role in the future of cryptocurrencies.
Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.
Latest
View all
Tuesday, 11 August 2026
6 min
Tuesday, 11 August 2026
5 min
Tuesday, 11 August 2026
5 min
Wednesday, 12 August 2026
Indices
Gold Price Today, August 13: Gold Climbs Above $4,400 as Cooler US CPI Cuts Fed Hike Bets
Wednesday, 12 August 2026
Indices
TSMC Stock Rises 1.7% as AI Infrastructure Rally Lifts Chip Sector
Wednesday, 12 August 2026
Indices
USD/JPY forecast: Rate gap limits impact of US and Japanese intervention
Wednesday, 12 August 2026
Indices
KOSPI Jumps Nearly 5% as SK Hynix Surges 7% and Asian Chip Rally Accelerates
Tuesday, 11 August 2026
Indices
Gold Price Today, August 12, 2026: XAU/USD Rises 0.5% Near $4,400 Ahead of US CPI
Tuesday, 11 August 2026
Indices
Oil Nears $90 as Fading U.S.-Iran Deal Hopes Renew Hormuz Supply Fears
EN
