A well-known crypto analyst is foreseeing a rise in crypto asset prices as he anticipates the Federal Reserve to put an end to its anti-inflation monetary policies.
In a recent thread, the anonymous crypto analyst Pentoshi updates his 861,300 followers on the social media platform X, stating that we are nearing the conclusion of quantitative tightening (QT), which involves policies that decrease the Fed’s balance sheet and reduces the money supply in circulation.
Referring to data from the decentralized prediction platform Polymarket, the trader highlights that 100% of users believe that the Fed will cease QT by May of this year.
The termination of QT typically signals a bullish trend for risk assets such as Bitcoin (BTC) and altcoins, as it indicates the end of strict monetary conditions.
Nevertheless, Pentoshi advises investors to exercise caution, noting that both the S&P 500 and top crypto assets have experienced unsustainable growth in recent years.
“I believe we are approaching the end of QT, with Polymarket now pricing in high odds compared to before. While prices have decreased significantly, it is wise to remain cautiously optimistic. The market has rallied strongly, and assets were likely overvalued before,” Pentoshi explains.
“I anticipate any current upward movement to be a lower high. The time aspect is often underestimated by people,” he adds.
As of the time of writing, Bitcoin is trading at $83,248.
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