Bitcoin Faces Bearish Sentiment Despite Powell's Signal on Quantitative Tightening
The Fed's quantitative tightening, which began in 2022, has reduced the balance sheet from $9 trillion to $6.6 trillion.
The cryptocurrency market continues to be overshadowed by bearish sentiment towards Bitcoin, despite Federal Reserve Chairman Jerome Powell hinting that the end of Quantitative Tightening (QT) may be on the horizon. Powell's signal comes after a tumultuous period of QT, which has seen the Fed reduce its balance sheet significantly from $9 trillion to $6.6 trillion since 2022.
Investors remain cautious as Bitcoin struggles to gain momentum in the face of economic uncertainty and regulatory challenges. The lingering pessimism reflects concerns over the impact of QT policies on the broader financial landscape.
While Powell's indication that the end of QT may be nearing could potentially alleviate some market jitters, the overall outlook for Bitcoin remains clouded by prevailing bearish sentiment.