Reputed Analyst Predicts Quiet End to QE, Remains Bearish on Crypto Markets

Reputed analyst Doctor Profit has shared his predictions for the FOMC meeting outcome and its potential impact on the financial markets, including crypto. Despite market expectations of a 25 basis point rate cut, Doctor Profit emphasizes that the real game begins with Powell’s words. He highlights key insights: the end of quantitative tightening (QT) does not automatically mean the start of quantitative easing (QE), suggesting that liquidity will remain tight and new injections unlikely. This, according to him, indicates a fragile economic system in need of immediate intervention. 8 hours before the FOMC meeting began, Doctor Profit publicly predicted a rate cut and shared his reasoning, further fueling market uncertainty. He remains bearish on Bitcoin (BTC) and stocks, believing that continued tightening of monetary policy coupled with low liquidity reserves will lead to an impending crash. Doctor Profit anticipates a lack of QE until a major crisis arises, which he believes is brewing right now due to the repo market being strained. The article dives into Doctor Profit’s detailed analysis of the repo market, highlighting the growing liquidity stress and the potential for market turmoil. He emphasizes that despite high inflation rates (50% above the FED target), QE likely won’t begin until a major crisis unfolds, potentially triggered by the collapsing overnight funding markets. Doctor Profit concludes by reiterating his short positions on BTC between $116,700 and $117,200, while holding existing short positions in USDT. He predicts a weakening market and anticipates that liquidity will evaporate, leading to the Fed printing money once again.