Golden Finance reports that the Federal Reserve announced early this morning that it will slow down the pace of reducing its $6.8 trillion balance sheet, lowering the monthly limit for Treasury reductions from $25 billion to $5 billion. The easing financial environment seems to be stimulating risk appetite. The dollar recorded its third-largest three-day drop since 2015, while U.S. Treasury yields and bond market volatility also fell sharply.
Jamie Coutts, Chief Cryptocurrency Analyst at Real Vision, said these changes could lay the groundwork for a significant rise in Bitcoin over the next 90 days. Historically, these signals usually precede major fluctuations in Bitcoin. Now, with the People's Bank of China increasing liquidity measures, despite ongoing concerns about Trump's tariffs and a possible economic recession, markets may underestimate the speed at which Bitcoin is soaring and could reach record highs before the end of Q2.