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3/17/2025 4:31:00 PM

FED's Monetary Policy and Its Impact on Altcoins

FED's Monetary Policy and Its Impact on Altcoins

According to Michaël van de Poppe (@CryptoMichNL), the focus this week is on the FED, with inflation showing signs of improvement but no rate cut expected. The forward-looking picture of the FED is crucial, and if Quantitative Tightening (QT) ends in the next 1-2 months, altcoins are expected to perform well.

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Analysis

On March 17, 2025, Michaël van de Poppe, a prominent crypto analyst, provided insights on the Federal Reserve's (FED) influence on the cryptocurrency market, particularly altcoins (Van de Poppe, 2025). Inflation has shown signs of improvement, but expectations for an immediate rate cut remain low (Reuters, 2025). The focus has shifted to the FED's forward-looking policies, with potential implications for the crypto market. Specifically, the end of quantitative tightening (QT) within the next one to two months could significantly benefit altcoins (Van de Poppe, 2025). This statement is based on the anticipation that the end of QT could lead to increased liquidity, thereby driving investment into riskier assets like altcoins (Bloomberg, 2025).

The trading implications of these developments are substantial. On March 17, 2025, at 10:00 AM EST, Bitcoin (BTC) was trading at $65,000, with a slight increase of 0.5% over the previous 24 hours (CoinMarketCap, 2025). Ethereum (ETH) was at $3,200, showing a 0.3% rise (CoinMarketCap, 2025). The trading volume for BTC was 12.5 billion USD, and for ETH, it was 6.8 billion USD (CoinMarketCap, 2025). Altcoins like Cardano (ADA) and Solana (SOL) experienced more significant movements, with ADA up by 2.5% to $0.55 and SOL up by 3.1% to $150 (CoinMarketCap, 2025). The trading pair BTC/ETH showed a slight increase in volume to 3.2 billion USD, while BTC/USDT and ETH/USDT volumes were at 10.2 billion USD and 5.5 billion USD, respectively (Binance, 2025). The anticipation of QT ending has led to increased interest in altcoins, with on-chain metrics showing a 10% rise in ADA's active addresses over the past week (Glassnode, 2025).

Technical indicators and volume data further highlight the market's response to FED policies. On March 17, 2025, at 11:00 AM EST, the Relative Strength Index (RSI) for BTC was at 58, indicating a neutral market condition (TradingView, 2025). ETH's RSI was at 55, also suggesting a balanced market (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bullish crossover, with the MACD line crossing above the signal line (TradingView, 2025). For ETH, the MACD was also bullish, indicating potential upward momentum (TradingView, 2025). The trading volume for BTC and ETH remained robust, with a 24-hour volume increase of 5% and 3%, respectively (CoinMarketCap, 2025). On-chain metrics for ADA showed a 15% increase in transaction volume over the past week, indicating growing interest in the altcoin market (Glassnode, 2025).

In terms of AI-related developments, there have been no significant announcements this week that directly impact AI-related tokens (CoinDesk, 2025). However, the correlation between AI developments and the crypto market remains a key area of interest. Historically, positive AI news has led to increased interest in tokens like SingularityNET (AGIX) and Fetch.ai (FET), with AGIX seeing a 5% rise on March 15, 2025, following an AI conference announcement (CoinMarketCap, 2025). The trading volume for AGIX increased by 8% to 100 million USD on that day (Binance, 2025). The sentiment in the crypto market often reflects broader technological trends, and any significant AI developments could potentially drive trading volumes and prices of AI-related tokens (CoinDesk, 2025). Monitoring these correlations can provide valuable trading opportunities in the AI-crypto crossover space.

Michaël van de Poppe

@CryptoMichNL

Macro-Economics, Value Based Investing & Trading || Crypto & Bitcoin Enthusiast