Bitcoin market is bullish amid Fed’s slower unwinding

The US Federal Reserve announced on March 19 that it would be slowing down its quantitative tightening cycle. From April, the monthly sale of Treasury bills is to be reduced from $25 to $5 billion. Such a shift could ease liquidity problems for risky assets, including Bitcoin.

Analysts like Arthur Hayes believe this is a positive sign for cryptocurrencies. With Bitcoin up 3.53% over the past week, the impact of reduced liquidity pressure is already being felt. Jamie Coutts from Real Vision says lower volatility in Treasuries may enhance market liquidity and price stability.

Sentiment within the crypto community has also improved, with the Fear and Greed Index rising to 49, reflecting growing investor confidence.

Despite BTCUSD being down 22% from its all-time highs, the long-term outlook remains positive. Market participants suggest that the current price fluctuations represent a "mid-bullish correction", and a bearish forecast would require a more significant decline, as reported by Coinotag.