TradingKey - The Federal Reserve's decision to slow the pace of quantitative tightening (QT) pace has driven Bitcoin above $87,000, with institutions bullish on its performance in the coming months.
On Thursday, Bitcoin (BTC) surged 5% to a high of $87,453, its highest level in nearly two weeks, following the Fed's announcement to slow its balance sheet reduction. As of press time, Bitcoin is trading at $86,117.
Bitcoin Price Chart, Source: TradingView.
Early this morning, the Federal Reserve announced it would slow the reduction of its $6.8 trillion balance sheet, lowering the monthly Treasury reduction cap from $25 billion to $5 billion. This move has eased market liquidity,sparking a rebound in cryptocurrencies, with Bitcoin leading the surge.
Jamie Coutts, Chief Crypto Analyst at Real Vision, stated, "These shifts could lay the groundwork for a significant Bitcoin rally within the next 90 days."
David Duong, Head of Research at Coinbase, added, "With liquidity transitioning from tight to loose after nearly six months, crypto asset prices may bottom out faster than most market participants expect."
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