{"id":372097,"date":"2025-02-20T22:05:46","date_gmt":"2025-02-20T16:35:46","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=372097"},"modified":"2025-02-20T22:05:46","modified_gmt":"2025-02-20T16:35:46","slug":"will-btc-price-follow-sp-500-to-ath-as-fed-ends-quantitative-tightening-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/will-btc-price-follow-sp-500-to-ath-as-fed-ends-quantitative-tightening-crypto-news\/","title":{"rendered":"Will BTC Price Follow S&P 500 to ATH as Fed Ends Quantitative Tightening? – Crypto News"},"content":{"rendered":"

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BTC price remains in a tight range this week, continuing a trend that started in November last year. It is stuck inside the support at $90,000 and the resistance at $108,000. Bitcoin price may follow the S&P 500 index to a new record high as the Fed nears the end of the quantitative tightening process.<\/span><\/p>\n

BTC Price to Benefit From the S&P 500 Surge<\/strong><\/h2>\n

Bitcoin price has been left behind by American stocks this year. It remains in a consolidation phase as the top blue-chip indices like the S&P 500 and Nasdaq 100 sit at a record high. The S&P 500 index rose to $6,115, while the Nasdaq 100 has jumped to $22,126.\u00a0<\/span><\/p>\n

These indices have jumped as investors have largely ignored the ongoing <\/span>warnings on Tariffs by Donald Trump<\/span><\/a>. These tariffs, if implemented, would likely affect most companies, especially those in the construction, pharmaceutical, manufacturing, and retail sectors.\u00a0<\/span><\/p>\n

Therefore, the S&P 500 index surge is likely because investors expect that Donald Trump is using these tariffs as a bargaining chip against top trading partners.<\/span><\/p>\n

The soaring stock market may be a signal that investors have embraced a risk-on sentiment, which may push some to the cryptocurrency market. Recently, however, the correlation that existed between Bitcoin and the S&P 500 index has eased, as shown below.<\/span><\/p>\n

\"Bitcoin
Bitcoin and S&P 500 correlation<\/figcaption><\/figure>\n

Fed to End Quantitative Tightening<\/strong><\/h2>\n

A potential catalyst for S&P 500 and BTC price is that the Federal Reserve is about to end the quantitative tightening (QT) process. This detail was revealed in Wednesday\u2019s FOMC minutes, which noted:<\/span><\/p>\n

\u201cRegarding the potential for significant swings in reserves over the coming months related to debt ceiling dynamics, various participants noted that it may <\/span>be appropriate to consider pausing or slowing balance sheet runoff <\/b>until the resolution of the event.\u201d<\/span><\/p>\n

QT is a process where the Fed reduces the money supply in the economy by reducing the size of the balance sheet. It is the opposite of quantitative easing, a form of stimulus. Ending QT may be a bullish catalyst for the <\/span>value of BTC<\/span><\/a>.<\/b><\/p>\n

BTC Price Technical Analysis<\/strong><\/h2>\n

The weekly chart gives a bullish <\/span>Bitcoin price prediction<\/span><\/a>. <\/b>It <\/span>formed a cup and handle pattern that ended in November<\/b> when it made a strong bullish breakout. The C&H pattern comprises a horizontal resistance and a rounded bottom. It also has a handle, which in this case, formed between March and November last year.\u00a0<\/span><\/p>\n

\"Bitcoin\"Bitcoin
Bitcoin Price Chart<\/figcaption><\/figure>\n

Bitcoin is now forming a bullish flag pattern. This pattern has a vertical line and a rectangle, and is usually a highly bullish sign. Therefore, the coin will likely surge, and possibly hit $122,000 in the near term. This target is based on the cup\u2019s depth, which is then measured from its upper side. A crash below $90,000 will invalidate the bullish view.<\/span><\/p>\n

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Frequently Asked Questions (FAQs)<\/h2>\n
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\n \tThere are rising odds that Bitcoin price will follow the S&P 500 index to its all-time high in the coming weeks as the Fed pauses QT.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

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\n \tThe other Bitcoin price catalysts are its strong technicals, including the cup and handle pattern and the bullish flag.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

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\n \tThe main BTC target is $122,000. This target is derived by measuring the depth of the cup and then measuring the same distance from its upper side. <\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n

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crispus <\/p>\n<\/p><\/div>\n

Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com. <\/p>\n<\/p><\/div>\n

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

BTC price remains in a tight range this week, continuing a trend that started in November last year. It is stuck inside the support at $90,000 and the resistance at $108,000. Bitcoin price may follow the S&P 500 index to a new record high as the Fed nears the end of the quantitative tightening process. […]<\/p>\n","protected":false},"author":2,"featured_media":372099,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-372097","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/372097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=372097"}],"version-history":[{"count":3,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/372097\/revisions"}],"predecessor-version":[{"id":372103,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/372097\/revisions\/372103"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/372099"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=372097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=372097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=372097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}