Polymarket Bets Signal Fed’s QT End, Paving Way for a Crypto Rally

Polymarket users are betting with 100% odds that the US Federal Reserve will wind down its quantitative tightening (QT) program before May. The wagering, which has amassed over $6.2 million in trading volume, indicates strong market sentiment favoring a policy shift. If the QT program is ended along with potential rate cuts later in the year, increased liquidity could support a renewed crypto bull market. The news comes amid broader indications of economic recovery, with recent data showing an expansion in the US manufacturing PMI after years of contraction. Bitcoin, which experienced a roughly 30% decline from its January peak, is expected to benefit from the easing of monetary policy, as historical trends indicate such moves have previously led to bull runs in risk assets. The report references the longstanding correlation between Bitcoin’s price and economic indicators like the ISM manufacturing PMI, suggesting that similar dynamics might play out once policy shifts commence.