- Fed signals QE as trade tensions rise, boosting risky-assets sentiment across global markets.
- Bitcoin and altcoins may rally as SPX and DJI surges following the decline in DXY and VIX.
- Rising global liquidity and falling PPI data support a shift toward risk-on investing.
Altcoins show potential for market momentum as macroeconomic conditions create benefits for their growth. International trade tensions between the U.S. and China have led to increased inflation concerns following Trump’s 90-day tariff waiver that China answered with 125% retaliatory import taxes. In a YouTube video on Saturday, Crypto Rover highlighted the Federal Reserve’s current stance. He noted that the Fed shows willingness to defend the economy by expressing openness to implementing quantitative easing (QE) measures to counter global economic threats.
The US Dollar Index (DXY) continues to decrease, and the Volatility Index (VIX) shows mounting uncertainty through a sustained upward trend. The market is incorporating expected capital inflow that will drive simultaneous price increases across multiple asset classes. The S&P 500 (SPX), alongside Dow Jones (DJI) and Nasdaq (NDX), has started showing signs of market risk acceptance through its rising performance.
Source: X
Bitcoin, Ethereum at Resistance
Bitcoin and Ethereum currently struggle to surpass crucial resistance points, which may trigger enhanced momentum across the entire altcoin sector. Ethereum maintains its position at an extended Bitcoin opposition stage while displaying the necessary structural aspects for an impending price recovery. Long-term holder accumulation activity within on-chain data shows signs of increasing, which historically leads to price increases.
The Ethereum network maintains strong investor confidence in its future utility since it has tokenized assets worth more than $130 billion. If Bitcoin surpasses $88,000 decisively, then market analysts predict Ethereum has the potential to reach $2,500. The ongoing Bitcoin dominance period will not last forever, and investors might start shifting their funds between altcoins.
Related: US Dollar Index Dips Below 100: Will Bitcoin Rally Next?
Fed Dovish Policy Hints
The Federal Reserve’s supportive statements toward monetary policy have boosted the investors’ optimistic perspective. Market distress will prompt officials to act through rate cuts alongside liquidity injections as planned response strategies. The Producer Price Index’s unexpected fall in recent economic data strengthens the case for monetary policy relaxation.
According to Rover, liquidity trends point upward because the M2 money supply has formed the double bottom pattern and entered an uptrend. These movements demonstrate that Bitcoin has also traditionally manifested a link to global liquidity cycles. The past behaviour indicates that altcoins will rise as the market becomes bullish on Bitcoin.
Source: X
As Bitcoin dominance reaches a four-year high, any shift in capital toward altcoins could trigger a sharp rally. The direction of macroeconomics remains positive, and easing of concern brings a new capitulation for the altcoin trend.
