Bitcoin's Bull Run Is Now At The Fed's Mercy: Here's What That Means

Liquidity shifts from the Federal Reserve could determine whether Bitcoin (CRYPTO: BTC) reverses its downtrend or enters a 2019-style correction.

What Happened: Prominent analyst Kevin pointed out that during quantitative easing (QE) or balance sheet expansion, Bitcoin dominance tends to top out, paving the way for altcoin outperformance.

Conversely, during quantitative tightening (QT) phases, liquidity tightens and Bitcoin outperforms the rest of the market, a pattern seen since mid-2022.

In a new post in his exclusive Patreon group, the analyst said that with liquidity likely to loosen from Dec. 1, Bitcoin dominance could reverse lower, forming a macro lower high after BTC hits a new all-time high, potentially triggering altcoin strength into year-end.

Also Read: Bitcoin Crashes 4% To $106,000: Is The Bull Run Over?

Why It Matters: Kevin outlined two possible scenarios for the upcoming months:

• Base Case (Bullish): Bitcoin rallies soon, BTC dominance peaks in December, and altcoins outperform as liquidity expands.
• Alternative (Bearish): A 2019-style correction, where both Bitcoin and altcoins fall ? though alts decline less, causing BTC dominance to drop regardless.

He noted that Bitcoin remains range-bound between $98,000?$125,000, with key support at $106,800. High-timeframe indicators (3D?1W) are still resetting, suggesting that momentum may take time to recover.

Bitcoin's failure to hold above the bull market support band last week confirms resistance, signaling continued corrective behaviour.

Kevin cautioned that losing the current support zone could threaten the macro uptrend, making it a critical level to watch.

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• Bitcoin Drops To $107,000 As Ethereum, XRP, Dogecoin Plummet Over 5%

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