Is Bitcoin bull run stalling? – Jerome Powell’s QE stance raises questions

• Fed Chair Powell dismissed quantitative easing, reinforcing commitment to ongoing quantitative tightening.
• Bitcoin dominance may persist unless monetary policy shifts in Q2 2025.

The highly anticipated Federal Reserve meeting, expected to provide economic relief, has instead dealt a fresh blow to market optimism.

Jerome Powell’s bold move 

In his testimony on the 11th of February, Fed Chair Jerome Powell dismissed the possibility of renewed Quantitative Easing (QE), emphasizing that such measures are only considered when interest rates are at zero.

He further reinforced the central bank’s commitment to ongoing Quantitative Tightening (QT), signaling that any policy shift remains distant.

This stance has sparked intense debate within the crypto community, with some seeing it as a necessary move for economic stability, while others fear it could delay Bitcoin’s [BTC] next major rally.

Community reacts

For instance, Macro analyst Alex Krüger posted on X reiterating Powell’s stance and said, 

“We are ages away from QE – some people needed to hear this.” 

However, when contradicted by an X (formerly Twitter) user who noted, 

“No need for QE only for discontinuation of QT.” 

Krüger replied saying, 

“A few more months to go for that.”

Echoing similar sentiments, Felix Jauvin, the host of the On the Margin podcast added, 

“We are entering an economic golden age in my opinion and are less dependent on monetary dominance to keep things together. Again, THIS IS A GOOD THING!”

Based on the comments, many believe that both the broader financial market and the crypto sector are poised for growth.

However, crypto analyst Kevin offered a contrasting perspective, when he pointed out, 

“We do not need QE but we have also never seen a macro cycle top in #BTC Dominance in its era of relevancy with the #Altcoins market in a time where QT was actively occurring.” 

Is Bitcoin bull run round the corner?

Kelvin suggested that historically, Bitcoin’s dominance over the crypto market has never peaked during a period of QT. This phase occurs when central banks restrict liquidity through asset sales or high interest rates.

Unless there is a shift in monetary policy, BTC’s market dominance could continue its sideways trajectory.

Analysts predict a potential shift in Q2, indicating macroeconomic factors might influence market trends during this period.

However, if Fed Chair Powell maintains his current stance on prolonging QT or keeping interest rates elevated, predictions of an imminent “altcoin season” may remain unfounded.

This scenario would challenge expectations of a broad altcoin surge, reinforcing Bitcoin’s prevailing dominance within the digital asset space.

Current market scenario

This event coincided with Powell’s semi-annual monetary report to the U.S. Congress on the 12th of February. He reaffirmed that the Federal Reserve was “in a hurry to change its policy stance.”

Additionally, it coincided with a notable upswing in the broader crypto market. The global market capitalization reached $3.19 trillion, marking a 1.35% increase over the past day.

BTC, the leading cryptocurrency, mirrored this trend, trading at $96,009.53, at press time. Bitcoin had a modest gain of 0.04%, in the last 24 hours, according to CoinMarketCap.

These figures reflect the market’s resilience despite ongoing macroeconomic uncertainties, reinforcing Bitcoin’s dominance amid shifting monetary policies.