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Polymarket Flips Bullish on US Monetary Policy: Is The Fed About to Pump Crypto?

Polymarket Flips Bullish on US Monetary Policy: Is The Fed About to Pump Crypto?

99bitcoins99bitcoins2025/03/18 16:44
By:Alex IoannouSam Cooling

Betters on the crypto-based prediction platform Polymarket believe it’s now a certainty that the US Federal Reserve (Fed) will wind down its quantitative tightening (QT) program by May 2025. Many analysts believe this could be the catalyst needed to trigger the euphoric leg of the bull market.

The wager, titled “Will Fed end QT before May?” has now closed with a 100% yes vote and over $6.25m in trading volume.

Polymarket Flips Bullish on US Monetary Policy: Is The Fed About to Pump Crypto? image 0

( POLYMARKET )

Polymarket Has a History Of Being On The Right Side Of Big Predictions

Polymarket is a crypto-based prediction market that lets betters wager on real-world events. It became hugely popular during the 2024 US presidential election campaign.

At a time when mainstream media were all predicting a win for Democratic nominee Kamala Harris, users of Polymarket accurately predicted the ascent of Donald Trump.

In the first week of the “Will Fed end QT before May?” market being open, the ‘Yes’ vote was floating between 40-60%. It wasn’t until March 13 that things changed, with millions of dollars pouring into the market, mostly voting yet.

By March 14, the ‘Yes’ vote had hit a unanimous ‘100% chance’, where it stayed until the market closed on Sunday (March 16). Now, crypto enthusiasts and analysts are calling for the bull market to hit its peak once QT has ended and into QE (quantitive easing).

As for the Fed’s decision on BPS (basis points) in March, Polymarkets has a  99% chance of no change from its current rate of 4.25-4.5%.

With this in mind and Polymarket’s history of correctly predicting such matters, we may be looking at a slow start to April for crypto before a spike toward the end of the month as investors begin positioning themselves for the Fed cutting QT in May.

Polymarkets are predicting a 100% chance of the FED starting quantitative easing before May. Historically alts only had bull markets when the $FED was in QE, meaning the cost of borrowing money was cheaper therefore people could buy $alts . $BTC dominance is also close to the last… pic.twitter.com/IJrIsHMiVX

— Pedro Teixeira (@Pedrot14crypto) March 16, 2025

Move From QT To QE By The Fed Could Provide The Much-Needed Spark For This Bull Run

The Fed’s current QT setup has been ongoing since June 2022. In addition to raising short-term interest rates, the Fed uses QT to raise long-term rates and remove excess liquidity from the market.

However, the start of QT in 2022 didn’t prevent stocks and crypto prices from rallying, where the S&P 500 continued to climb and Bitcoin began climbing from the depths of sub $20,000.

Both markets are now coming off back-to-back years of impressive growth, but both are struggling to maintain momentum due to recent macroeconomic events stemming from the Trump administration.

Now, the growing belief that the Fed is ready to wind down QT is seen by many as a bullish catalyst for crypto. Historically, it means that excess liquidity will eventually trickle down into risk assets, with crypto at the forefront.

Combined with rate cuts in Q3 and Q4 of this year, there may be enough catalysts to reverse the crypto markets’ multi-month downtrend.

🚨 BREAKING: Analysts Predict QT Could End by Mid-2025! 🚨

💸 Liquidity boost incoming? Fed may halt Quantitative Tightening (QT) sooner than expected.
📉 Weaker USD, lower rates = 🚀 BULL RUN for crypto & stocks!
🔥 If QT ends early, Bitcoin & altcoins could skyrocket!

Are you… pic.twitter.com/zu15IWrGL8

— ChickenBaconRoll (@ChickenBaconRol) March 18, 2025

BONUS: Best Wallet (BEST) Presale Rumoured To Be Ending Soon – Over $11m Raised And Still Going Strong

Best Wallet (BEST) is slowly but surely taking over the Web3 wallet space. Not only does the app boast over 500,000 downloads and 250,000 active users, its native token, BEST, has been a huge success. With over $11m raised and still going, investors are eyeing it as a blue-chip investment in a revolutionary crypto wallet.

Imagine if when MetaMask launched back in 2016 it came with a native token. One can only imagine that as MetaMask carved out its spot as the number one crypto wallet, its hypothetical token would have soared alongside it, offering gains of 100x and possibly much more.

This is a big reason why the BEST presale has seen such high levels of interest and investment. By securing the token in the early days of the wallet being live, holders are betting on Best Wallet becoming a leader in the self-custodial web3 wallet space.

The features offered to Best Wallet users leave the MetaMask above in the dust. Best Wallet allows you to store, trade, stake, game, wager, and soon even spend via a Google and Apple Pay-connected debit card.

However, my favorite feature is the Best Wallet ‘Upcoming Tokens’ platform. The team works closely with reputable teams to allow ‘phase 0’ investment into some of the hottest presales on the market. This means early access to some of the biggest gems at the lowest price points.

There are less than 12 hours remaining before the price per BEST increases from its current level of $0.024375. Once the timer hits 0, that price will be gone.

Check Out The Best Wallet Presale Here

DISCOVER: 20+ Next Crypto to Explode in 2025

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Polymarket prediction platform votes 100% chance that Fed ends quantitive tightening (QT) by May

  • Polymarket betters correctly predicted Donald Trump would beat Kamala Harris to become the next President
  • Crypto bull runs historically hit their peak when the Fed moves from QT to QE (quantitive easing)
  • Polymarkets believes there is a 99% chance of ‘no change’ in March to the Fed’s BPS rates
  • Best Wallet (BEST) hits $11.1m in presale funding with rumors suggesting it is coming to an end soon
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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