Real Vision chief analyst: Loose financial conditions could set the stage for bitcoin's Q2 rally
The Federal Reserve announced early this morning that it would slow the pace of shrinking its $6.80 trillion balance sheet, reducing the monthly limit on Treasury bond reduction from $25 billion to $5 billion. Easing financial conditions appear to be stimulating risk appetite. The dollar recorded its third-largest three-day decline since 2015, while Treasury yields and bond market volatility also fell sharply.
Jamie Coutts, chief cryptocurrency analyst at Real Vision, said the shifts could set the stage for a big rally in Bitcoin over the next 90 days. Historically, these signals have often preceded big moves in Bitcoin. Now, with the People's Bank of China ramping up liquidity measures, and despite persistent concerns about Trump tariffs and a possible recession, the market may have underestimated the pace of Bitcoin's surge, potentially hitting record highs by the end of the second quarter.