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June 12, 2026, 08:21:47 AM |
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So i have been reading a lot lately that there has not been a real altseason in the last 4 years because we were in QT (Quantitive tightening) for most of the time.
QT began in June 2022 and ended December last year. I don't know too much about this topic but quick google search it says Crypto struggles during QT as central banks shrink their balance sheets & drain liquidity, risk on assets face severe downward pressure and lower trading volumes.
Now that QT is finally over, QE (Quantitve easing) is expected to start in the coming months for the next few years and i have read that during QE years crypto benefits due to injecting massive liquidity into the financial system, devaluing fiat currencies and pushing investors towards riskier assets.
The last QE period was from March 2020 and it lasted till March 2022 and if you look at bitcoin and altcoins, they all performed very well during that time with bitcoin going from $6k to $69k and many altcoins seeing big returns with many seeing 20x returns or more.
Many are hoping with QE expected to start sometime this year, that more liquidity will come as people will put their money into riskier assets like crypto.
Do we think there really is a link between crypto and QE? Or is there much more to it?
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