If you were hoping the Federal Reserve would turn on the money taps in the face of 2025’s marketplace mess, bad news: According to the pros, the Fed is still keeping the chocolate locked up top in the cupboard. The “quantitative easing” (QE) train isn’t leaving the station (yet), no matter how many ‘Recession Ahead’ signs get waved in its face.
But before you accuse the Fed of being a total party pooper, let’s attempt to understand when it *would* go full QE, and how that could send Bitcoin sky-high, or sliding ignominiously into the digital ditch. For answers, BeInCrypto cornered experts from 22V Research, CryptoQuant, and BingX, presumably before they could fake a tunnel escape.
Trying to Steer the 2025 Market: A Bit Like Herding Drunk Cats
Markets this year have had more drama than a soap opera marathon. Think trade wars, slowing economies, and inflation you can almost hear cackling behind your back.
Want a stat to make you feel better? The US stock market just broke the record for “Worst Presidential First 100 Days Since Gerald Ford, 1974.” And if you’re in crypto—listen, condolences: Bitcoin dropped below $77k, altcoins melted down, and the phrase “holding on for dear life” began trending in group chats.
Trump offered a temporary Band-Aid via a 90-day pause on tariffs, giving traders something to tweet about other than their therapy bills. But the real nail-biter is what happens when that timer runs out. Meanwhile, inflation is busy doing its best impression of a balloon animal gone wrong.
“Let’s just say if you’re an investor right now, you need either supernatural optimism or a crystal ball. The future’s so murky, the Magic 8 Ball just laughs at you,” according to Jordi Visser, Head of AI Macro Nexus at 22V Research.
So, everyone is staring at the Federal Reserve like it’s the teacher in a classroom full of kids armed with spitballs, to see if it’ll break out the QE art supplies. Wild rumors, but no actual watercolors—yet.
Quantitative Easing: How the Central Bank Does Its Magic (or Attempts To)
QE, in nerd terms, is when central banks buy a heap of government bonds in a grand attempt to inject “liquidity” (that’s money with its coat off and ready to party) into the economy. The idea: make it cheaper to borrow, tempt everyone to spend, and fuel markets like it’s Black Friday at Walmart.
“But why do Bitcoin prices care?” you ask, innocently clutching your cold wallet. Because suddenly there’s more money sloshing about, people lose faith in old-school cash, and risky assets—including Bitcoin—become the new hotness. The COVID crash of March 2020 is the poster child: Bitcoin tanked to $3,800, the Fed went QE berserk, and Bitcoin shot up like a caffeinated squirrel.
“QE dumped a tidal wave of liquidity into the market, making Bitcoin not just a hedge, but a darling for anyone feeling lucky,” BingX’s Vivien Lin declared. 2025 could see an encore—if the Fed ever gets its groove back.
Basically, when interest rates nosedive and money is easy to borrow, Bitcoin puts on its sequined jacket and takes the stage.
Bitcoin: 2025’s Answer to Burying Cash in the Garden
The messier things get, the prettier Bitcoin seems. Investors—big, small, possibly some sentient robots—are using crypto as a “hedge” against the world’s ongoing wardrobe malfunction.
“Institutions are piling into crypto during market volatility. Meanwhile, Joe and Jane Retail are calmly rebalancing and trying to convince their uncles Bitcoin isn’t witchcraft,” Lin added.
Looks like companies too—see Michael Saylor building his own personal Bitcoin pyramid, GameStop dabbling (because why not, they’ve tried everything else), and Fold Holdings stacking coins like it’s a lemonade stand in July.
Even the Bitcoin whales are back, gobbling up coins faster than you can say, “should I have bought at $90k?”
“Since Bitcoin dipped below $90,000, whales have scarfed up around 110,000 coins. That’s not FOMO; that’s almost a coordinated buffet,” says Julio Moreno of CryptoQuant.
If the Fed ever does crank up QE, expect those glittering eyes on Bitcoin to get even wider.
The Moonshot Scenario: Bitcoin Bulls Writing Their Christmas Lists
Just last month, BitMEX’s Arthur Hayes claimed Bitcoin could hit $250,000 by the time your gym membership expires in 2025—IF the Fed jumps back on the QE bicycle. Jordi Visser doubled down, predicting more QE means more love for Bitcoin.
“Bitcoin’s like the ultimate outsider: it’s not in the fiat club, it loves easy money, and it’s the ‘it’ digital asset. Throw in stablecoins gaining traction and you’ve got a network effect party,” Visser explained, possibly while holding back giggles.
But—cue sad trombone—the experts say things aren’t *that* bad. No need to panic-buy canned food (or coins) yet.
QE? Hold Your Horses (and Wallets)
Moreno points out Bitcoin volatility isn’t even close to classic market-freakout levels. The “wow, panic!” emergencies of the past aren’t in the rearview—at least, not yet.
“During the COVID crash, volatility hit 72%. Terra-Luna? 49%. FTX drama? 31%. Right now, we’re hanging out between 8% and 21%—not even worthy of a Wall Street thriller montage,” said Moreno.
Visser isn’t seeing QE flashing on his dashboard either:
“For [QE] to happen, the economy needs to fall asleep at the wheel, or the bond market must completely lose its mind.”
Adding a final bucket of cold water, Lin says, “Hey, the Fed’s growth forecast just *dropped*, inflation is spiky, and Powell’s in no hurry to get QE-happy. He’s more ‘Netflix and chill’ about it.”
“Flexibility’s the name of the game. Just because there’s a fire alarm doesn’t mean we’re rushing for hoses—yet,” Lin summarized.
QE’s Impact: Crypto Grows Up (Like, Maybe)
No QE for now, but if the US economy gets the spins, all bets are off. Should jobs vanish, deflation strike, or geopolitics go full pantomime, the Fed could make with the cash.
“If multiple disasters align, QE could stomp back in and upend QT. Meanwhile, institutional investors and regulators will make crypto feel like the grown-up at the macroeconomics dinner table. Bitcoin could finally get its invitation to the big kid’s party,” mused Lin.
Who knows? QE could set the stage for crypto to move from “weird tech cousin” to “star of the family reunion.” Or, you know, it could just be more chaos. But hey, that’s the market for you—never boring, always slightly unhinged.
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2025-05-02 17:40