Multi-Year Altcoin Supercycle to Begin After Fed Ends QT?
The post Multi-Year Altcoin Supercycle to Begin After Fed Ends QT? appeared on BitcoinEthereumNews.com.
The end of the Federal Reserve’s quantitative tightening (QT) program on December 1, 2024, marks a pivotal shift for crypto markets. Despite this milestone, experts note that visible impact could take time. Balance sheet expansion may be delayed until early 2026 due to treasury settlement lags, mirroring past cycles. Sponsored Sponsored Historical Patterns Link Fed Policy to Altcoin Performance The Fed’s monetary policy increasingly influences the crypto market. Historically, when the Fed was not engaged in QT, altcoins showed notable strength against Bitcoin, sparking multi-year rallies and altering market dynamics. These shifts signal a clear relationship between liquidity policy and crypto performance. Analyst Matthew Hyland identifies historical trends where non-QT periods were followed by sustained altcoin rallies lasting between 29 and 42 months, highlighted by the OTHERS.D/BTC.D ratio. Hyland’s research spotlights the periods 2014-2017 and 2019-2022. During these periods, the absence of QT allowed altcoins to sustain uptrends for 42 and 29 months, respectively. “Altcoins historically outperform BTC when QT is not active. Alts have seen a 42-month & 29-month uptrend whilst QT was not active during 2014-2017 & 2019-2022. Based on the very strong correlation to the Fed’s balance sheet, it’s highly favorable Alts outperform BTC for many years going forward,” wrote Hyland. The OTHERS.D/BTC.D ratio, which compares altcoin market dominance to Bitcoin, climbed as monetary conditions improved, encouraging greater risk appetite. OTHERS.D/BTC.D ratio demonstrates historical altcoin outperformance during non-QT periods. Source: Matthew Hyland on X The Fed’s approach closely mirrors these shifts. From 2014 to 2017, a supportive stance led to strong altcoin growth. Likewise, after QT ended in August 2019, another altcoin rally unfolded and lasted through 2022. These cycles suggest Fed liquidity policy is a core influence on crypto risk assets. Sponsored Sponsored Hyland emphasized that the current balance sheet, around $6.55 trillion and stabilizing post-QT,…
Filed under: News - @ December 1, 2025 5:28 am