YouTube commentary by Ben Simpson reporting that JP Morgan signaled quantitative tightening (QT) may end at the next FOMC meeting. He argues that if QT stops, capital will flow into risk-on assets—particularly crypto and tech—driving a substantial bull market and that investors should not 'fade' the signal or fear missing out.
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Massive news for crypto just now, JP Morgan has just announced that they believe next week quantitative tightening will actually be ending in the upcoming FOMC meeting. If that is the case and we see quantitative tighting actually stop, we will see a huge inflow and influx of new capital into risk on assets. What even is quantitative tightening? Quantitative tightening is essentially the way the. The markets react to restricting the capital and the money in the economy. All right, they do that to manage inflation, a bunch of other things, but at a simple level, that's what they do. When quantitative tightening is in action, which it has been for the last two or three years, risk on assets like crypto and tech stocks tend to not perform well when we are in an environment of no quantitative tightening or quantitative easing. When there's more money in the ecosystem and more money in the economy, we see a huge expansion of risk on assets. Don't fade this guy. This is big news. If this plays out, which JP Morgan is not saying this lightly, if that plays out, which we'll know next week, this is gonna be massive for crypto assets. Don't fade this bull market. Stop buying into the fear. You are not too late. This is what you need to understand to see through that.