The crypto-based betting platform Polymarket now shows a 100% likelihood that the U.S. Federal Reserve will end its Quantitative Tightening (QT) before May. The odds have soared from just 30% earlier this month to certainty, as Donald Trump’s volatile tariff policy and the ensuing trade war have heightened concerns about imminent stagflation and recession. Meanwhile, interest rate traders are now pricing in three rate cuts this year, up from just one earlier, according to CME FedWatch data. The end of QT and imminent rate cuts could inject fresh liquidity into risk assets, potentially fueling the next leg of the crypto bull run. Will The Fed End Quantitative Tightening In April? Polymarket bettors are certain that the US Fed will end its QT program before its May FOMC meeting. Quantitative Tightening (QT) is a monetary policy tool used by central banks, such as the Federal Reserve, to reduce the money supply in the economy. The scheme involves offloading assets from the Fed’s balance sheet or letting them mature without reinvestment, effectively draining liquidity from the financial system. Together with interest rate hikes, QT is an effective tool to curb high inflation levels in the economy. While the Fed has already started to reduce its benchmark interest rates, it has continued with its monetary tightening. In February’s Congressional testimony , Federal Reserve Chair Jerome Powell claimed that the market industry hasn’t shrunk enough and that the central bank is in no rush to pause its balance sheet wind down. However, the central bank may soon have to revise its course, owing to Donald Trump’s volatile tariff policy. The White House is aggressively seeking a trade war with its major trading partners, sparking concerns regarding a potential recession or stagflation. Neither Trump nor Treasury Secretary Scott Bessent has dismissed concerns about a potential recession, both showing receptiveness to short-term pain. The Fed may need to adopt a more dovish monetary policy to offset the administration’s hawkishness. Moreover, the inflation in the US economy is dwindling, with February’s CPI and PPI data coming lower than expected. Truflation , a new popular real-time measure of inflation, actually shows that the US inflation is currently at 1.65%, below the Fed’s 2% target. It is, therefore, not a surprise that Polymarket bettors are considering it a certainty that the Fed will end its QT in April, a decidedly bullish event for the crypto market. Will The Bitcoin Price Hit $150,000 Following The Fed’s Dovish Pivot? The end of QT as well as the imminent interest rate cuts are expected to inject fresh liquidity into risk assets, paving the way for the next crypto bull market. Inflation is crashing. QT is ending. The dollar is tanking. Long term yields are falling. Global M2 is breaking out to all time highs. The US Government wants to buy as much BTC as they can. And Bitcoin is still trading for $82,000. Explain to me again why I should be bearish. — Mike Alfred (@mikealfred) March 18, 2025 Global Liquidity is entering the next bullish phase in its long-term cycle, which is already extremely bullish for Bitcoin. Meanwhile, the Global M2 money supply has hit a new all-time high. A dovish Fed now could provide the spark that could send Bitcoin and other large-cap assets to new all-time highs. Fundstrat’s Tom Lee projects that the Bitcoin price could hit $150,000 in 2025. Best Crypto To Buy Now Considering the possibility of an explosive bull rally, Bitcoin remains one of the best cryptos to buy. If Tom Lee’s projection pans out, investors buying today could get a clean 2x opportunity. Meanwhile, smart money investors aren’t giving up on Ethereum as well. Whales have purchased billions in $ETH despite the broader market uncertainty. Whales have bought more than 420,000 #Ethereum $ETH in the last five days! pic.twitter.com/ZFF57gbq0e — Ali (@ali_charts) March 14, 2025 Similarly, the meme coin market leader Dogecoin is seeing heavy whale investments, prominent analyst Ali Martinez reveals. Typically, whale investments are an excellent tool for investors to create their own lists of best cryptos to buy. For instance, whales continue to invest six figures in Solaxy (SOLX) , the first prominent Solana layer-2 coin, which has already raised nearly $27 million in its ICO. Armed with ZK proofs, data availability tools like Celestia and Hyperlane-powered multi-chain bridge, Solaxy’s layer-2 scaling solution promises to tackle the network congestion issues on Solana, even during periods of heavy traffic. Considering that the top Bitcoin and Ethereum L2s have multi-billion dollar valuations, it is no surprise that early SOLX buyers are viewing it as the next 100x crypto. Visit Solaxy Presale Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
