Crypto Underperforms Equities Market Despite Rate Cuts and QT End – Bull Run Over?

The Crypto Market's Gloomy Outlook: Underperformance Amid Rate Cuts and QT End Despite the Federal Reserve's efforts to stimulate the economy through rate cuts and the end of quantitative tightening (QT), the cryptocurrency market has failed to capitalize on the increased liquidity. Bitcoin, the flagship digital asset, has plummeted over 15% in just 30 days, while the S&P 500 equity index has managed to hold onto its gains. This concerning trend highlights the cryptocurrency market's inability to benefit from the global economic expansion, as investors seem to be steering clear of crypto assets in favor of traditional equities. The stark underperformance of the crypto sector, compared to the broader financial markets, raises questions about the long-term viability of a potential "bull run" in the near future. Experts attribute this disparity to the fact that the influx of liquidity generated by the Fed's policy changes is not being directed towards the cryptocurrency ecosystem. Instead, it appears that the expanding global liquidity is bypassing the crypto space, leaving Bitcoin and other digital assets in the doldrums. This development is particularly troubling for crypto enthusiasts and investors who had been hoping for a resurgence in the market's fortunes. The persistent downward trend in Bitcoin's price, coupled with the lack of enthusiasm from institutional and retail investors, casts a pall over the future prospects of the cryptocurrency industry. As the market navigates this challenging period, it remains to be seen whether the crypto sector can regain its footing and capitalize on the broader economic conditions. The path forward will be closely watched by both ardent supporters and skeptics of the digital asset revolution.