Fed to End QT: Could this Trigger Multi-Year Altcoin Rally Akin to 2019-2022?
The end of the Federal Reserves 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. Historical Patterns Link Fed Policy to Altcoin Performance The Feds 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. Hylands 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






