With the world’s two largest economies, the United States and China, both on the brink of entering into new easing cycles, the macroeconomic conditions seem ripe for a potential rally in the cryptocurrency market, according to analyst Qiao Wang of Alliance.
Renowned cryptocurrency researcher and commentator Qiao Wang has expressed his most bullish outlook on crypto in recent months, citing a combination of macro factors that he shared on X news. In a tweet on September 27, Wang stated, “this is the most bullish ive been in months. 2 biggest economies started the easing cycle. chart finally looking good. sentiment is still somewhat in disbelief. occams razor is we’ll be way up a few months from now.”
Wang highlighted that both the U.S. and China have begun “easing cycles,” indicating a return to quantitative easing (QE) to boost their respective economies. This approach, involving the large-scale purchase of securities to lower interest rates and increase money supply, has historically been used during times of market recession, as seen in the 2008 and 2020 financial crises.
Concerns are rising within the crypto community regarding the potential impact of QE initiatives from both countries. In an unprecedented move, the People’s Bank of China recently engaged in a 100 billion yuan (approximately $14.1 billion) treasury bond trade, marking the first such occurrence in 19 years. Meanwhile, the U.S. Federal Reserve has made its first rate cut since July 2023, reducing the metric from 5.25% to 5%.
Amidst these developments, seasoned trader Henrik Zeberg has consistently predicted the onset of the “worst recession since the 1920s” in the coming months. As market sentiment remains somewhat skeptical, Wang believes that the current conditions may pave the way for a significant rally in the crypto market in the near future.
