Analysis: The Federal Reserve may end quantitative tightening, and the Bitcoin market hopes for a policy shift.

PANews March 19 news, according to market analysis, the Federal Reserve may hint at the end of the quantitative tightening (QT) plan in the upcoming interest rate decision, which could provide support for Bitcoin and other risk assets. Currently, the market generally expects the Federal Reserve to maintain the interest rate in the range of 4.25%-4.50%, with a focus on the future direction of the QT plan. Since the launch of QT in June 2022, the Federal Reserve has gradually reduced the size of its balance sheet, and ending QT may mark the beginning of a new monetary policy, injecting liquidity into the market. Previously, Federal Reserve Chairman Jerome Powell hinted that QT may end in 2025. Analysis indicates that the end of QT may alleviate liquidity pressure in the U.S. Treasury market, while also potentially benefiting risk assets such as Bitcoin. However, the stagflation risk in economic forecasts may limit asset gains. Bank of America predicts that the Federal Reserve may pause QT due to the debt ceiling issue and could delay further rate cuts against the backdrop of lowered economic growth expectations and increased inflation. Additionally, data from the forecasting platform Polymarket shows that the probability of QT ending before May is as high as 100%.