Things Are Looking Bullish!๐
The Fed signaled the end of Quantitative Tightening and the SEC drops its appeal in the Ripple XRP case
Hey Thinkers ๐ก
Massive Day for Crypto and Markets: Fed Turns Dovish + Ripple Scores Victory Over the SEC
Today was a major day for the crypto market and financial markets overall โ two key developments dropped that could significantly shape the path forward for the current bull market.
๐ฆ Fed Turns Dovish โ QT Slowing Significantly, QE On the Horizon?
Fed Chair Jerome Powell took the stage today and dropped a game-changing update: while the Fed is keeping rates steady for now, Quantitative Tightening (QT) is essentially ending.
Hereโs the key detail:
Starting April 1, the Fed will slow the balance sheet runoff by slashing the monthly redemption cap on Treasury securities from $25 Billion to $5 Billion.
Expert trader Sven Henrich (NorthmanTrader) didnโt mince words:
โReducing to $5B is akin to pausing it altogether.โ
Translation: This 80% reduction is effectively the Fed putting the brakes on QT. This is bullish as markets are forward-looking โ and this signals that Quantitative Easing (QE) could be on the horizon.
Letโs recap the Fedโs path over the past few years: QT + Rate Hikes โ Pause Rate Hikes โ Rate Cuts โ Slowing QT โ QE Next?
Markets responded immediately. Stocks and crypto rallied higher, kicking off what looks like the next leg of the bull market. Bitcoin and the Nasdaq are rallying โ see charts below.
โ ๏ธ Caution: FOMC weeks are notoriously volatile. Expect price swings in both directions before things stabilize by next week.
โ๏ธ Ripple vs. SEC: Case Closed โ SEC Drops Appeal
Ripple CEO Brad Garlinghouse just confirmed what XRP holders have been waiting for:
โThe SEC will drop its appeal โ a resounding victory for Ripple, for crypto, every way you look at it.โ
Watch the full video of Brad Garlinghouseโs announcement.
This marks the final chapter in the Ripple XRP lawsuit, which began in December 2020. This historic win now sets a strong legal precedent for crypto regulation in the U.S.
While Ripple may still cross appeal to reduce the $125 million fine, the SEC is officially out of the picture. Rippleโs Chief Legal Officer Stuart Alderoty added:
โRipple is now in the driverโs seat.โ
Bullish for XRP:
XRP spot ETFs are now more likely, especially as Bitnomial launches CFTC-regulated XRP futures tomorrow โ physically settled, with real market impact.
These XRP futures are a key milestone, as futures markets are often required before spot ETFs are approved.
๐ First-Ever Solana ETF Launches Tomorrow in the U.S.
Adding more fuel to the bullish fire, Volatility Shares is launching the first-ever Solana ETF in the U.S. โ tracking SOL futures. Another sign that traditional finance (TradFi) is embracing crypto in full force.
๐ The Bull Market Setup is Coming Together
Macro โ
Legal โ
Government โ
Technicals & Charts โ
Everything is aligning for the continuation of the bull market โ markets have the green light.
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๐ฅThank You to my show Sponsors
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๐Crypto Market Metrics
Here are some key data points from Santiment
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Developer Activity
The top 10 coins with the most developer activity over the past 30 days
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๐บ Recent Interviews
Cosmo Jiang is a General Partner at crypto hedge fund Pantera Capital. He joined me to discuss the outlook for crypto in the US and the different sectors of the crypto market.
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-Tony