Powell Douses Bitcoin Bulls: No QE in Sight

The recent testimony of Federal Reserve Chair Jerome Powell has dampened hopes for another round of quantitative easing (QE), potentially signaling the end of the Bitcoin bull run. Powell reiterated that QE is a tool only used when interest rates are already at zero, and the Fed remains "a long ways away from ending QT." This stance challenges the notion that a quick pivot to aggressive easing might buoy Bitcoin and the entire crypto market as it did in past cycles.

Macro analyst Alex Krüger posted on Twitter that "we are ages away from QE," stressing that some market participants needed to hear Powell's stance clearly. Another commentator, Tagoo, noted there is "no need for QE, only for discontinuation of QT," prompting Krüger to respond that it may take "a few more months" for QT to wind down.

Felix Jauvin, the host of the On the Margin podcast, commented via Twitter: "For the QE is coming soon dreamers, I hope you just heard what Powell said 'QE is a tool we only use when rates are already at zero'. You don’t want zero rates and QE. That means a LOT of pain has to happen in the interim. QE isn’t coming to save your overleveraged alt bags anytime soon."

Jauvin believes the US economy has shifted from a period of stagnation to a more fundamental growth phase. According to him, "we can still see bull markets and a bid in risk assets without these monetary plumbing tricks," since he views this as a healthier, productivity-led environment—one he calls "an economic golden age."

Dan McArdle reminded followers that markets can remain risk-on "with a decent economy and some credit expansion." He cautioned the crypto community against anchoring expectations solely to zero-interest-rate policies and QE, suggesting that a steady economy could still support Bitcoin's upside.

Julien Bittel, Head of Macro Research at Global Macro Investor (GMI), framed Powell’s comments within "The Everything Code," contending that QE is only one part of the global liquidity picture. While the Fed might not pivot to QE soon, Bittel pointed out that other factors, such as actions by the People’s Bank of China, private credit creation, or shifts in the Treasury General Account, can also inject liquidity into markets. "The Fed’s got other tools, and they’ve