Analysts have mixed thoughts about how crypto will fare during 2022 as the Fed has decided to execute a quantitative tightening strategy. Global markets could suffer at least in the short term, but most see a bright future for crypto.
Laypeople can consider QT the opposite of Quantitative Easing or money printing which the Fed has been engaged in since the start of the Covid-19 pandemic in 2020. Under QE conditions, more money is created and distributed while the FED adds bonds and other treasury instruments to its balance sheet.
Bitcoin has never once in its history been in a bull market while the Federal Reserve did quantitative tightening.The mega crash is inevitable!Pav Hundal, manager at the Australian crypto exchange Swyftx, believes that QT could have a negative impact on markets. He told Cointelegraph on Wednesday that “It’s very possible you might just see growth in market cap trimmed slightly.”
“Furthermore, we expect a market bounce imminently, meaning investors should be positioning portfolios to capitalise on this.”
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