Fidelity: Fed Could Boost Bitcoin by Restarting 'QE Engines'

Key Points

1. Jurrien Timmer, Fidelity's head of global macro, believes the Fed might restart QE if it lowers rates more than justified by the Taylor Rule, leading to a bear-steepening yield curve.

2. A dovish Fed pivot could trigger a 'melt-up' in assets like Bitcoin and gold, reminiscent of the late 90s dot-com bubble.

3. The Fed's balance sheet is currently 23% of U.S. GDP, compared to Japan's central bank at 117%, hinting at potential future expansion.

4. Timmer speculates that post-2026 leadership changes could bring lower short rates and yield curve control, similar to Japan's approach.

5. The article mentions unrelated crypto news (e.g., Bitcoin whale activity, XRP transfers) but focuses on Fed policy's potential impact on Bitcoin.