Altcoins showed little reaction to Federal Reserve Chair Fed Jerome Powell’s comments about not rushing to adjust rates. Trader Matthew Hyland interpreted this as a sign that the sector has hit bottom.
#Crypto received the worst possible news of 2025 today yet Alts hardly sold off and some are in the green
Why?
1)Sellers exhausted
2)Markets are forward looking; possible the market already sniffed this news out prior hence the capitulation a week agoIf you told anyone…
— Matthew Hyland (@MatthewHyland_) February 11, 2025
The expert cited two reasons explaining the situation:
- Exhaustion of sellers.
- The market had already priced in the news a week ago, leading to a major buyer capitulation.
“If you had told anyone yesterday that Powell would announce a refusal to [restart] QE until the key rate is reduced to zero, most would have expected another massive sell-off to recent lows. That didn’t happen. The bottom is in,” Hyland noted.
The host of the Forward Guidance podcast, known as fejau, expressed an opposing view.
For the QE is coming soon dreamers, I hope you just heard what powell said “QE is a tool we only use when rates are already at zero”. You don’t want zero rates and QE. That means a LOT of pain has to happen in the interim. QE isn’t coming to save your overlevered alt bags anytime…
— fejau (@fejau_inc) February 11, 2025
“I hope you heard Powell’s words: ‘QE is a tool we only use when rates are at zero’ […]. This means a lot of suffering has to occur in the interim. QE isn’t coming to save your overleveraged altcoins anytime soon,” the expert explained.
In response, Messari co-founder Dan McArdle stated that “a decent economy and some credit expansion are sufficient for maintaining a moderately risk-on environment.”
Fwiw, a decent economy and some credit expansion is perfectly sufficient for a moderately risk-on env.
Everyone is just anchored to stuff like zirp and qe due to recency bias.
— Dan (@robustus) February 11, 2025
“Everyone is just anchored to things like ZIRP and QE due to recency bias,” he explained.
As reported in Blofin warned that altcoins might follow the fate of dot-coms in the U.S. stock market.
Earlier, JPMorgan stated expectations of Bitcoin maintaining dominance over Ethereum and other cryptocurrencies this year.