A potential shift in U.S. Federal Reserve policy is putting a spotlight back on altcoins — and analysts say XRP, Chainlink, and Cardano could be among the biggest beneficiaries.
As the Fed inches closer to ending its current quantitative tightening (QT) cycle — a process where liquidity is drained from the financial system — market watchers are starting to see a familiar setup reminiscent of late 2019. Back then, crypto assets experienced bullish momentum as monetary conditions loosened and economic activity improved.
Analysts Eye 2019-Like Setup
Crypto analyst Dan Gambardello has been vocal in pointing out historic market echoes. He notes that when quantitative tightening ended in September 2019 and the U.S. Manufacturing PMI pushed back above 50 — a key level signaling economic expansion — altcoins saw major upside.
Now, with the Fed’s QT cycle reportedly set to conclude in just a few days, Gambardello suggests similar tailwinds could be forming again.
“Historically, when QT stops and the economy shows renewed growth, risk assets like altcoins can thrive,” he argues.
Chainlink: Low Risk Score, Familiar Position
Chainlink is trading near the same Bitcoin ratio range it held at the end of the 2019 QT period. On-chain data shows its risk score still sitting at relatively low levels — a potential indicator that smart-money investors have not yet crowded the trade.
XRP: Regulatory Clouds Have Cleared
Unlike previous cycles, XRP enters this phase without the heavy burden of SEC litigation. The token’s ongoing recovery has pushed its BTC trading pair back to levels seen around the 2019 QT pivot. Analysts also highlight a current risk score of 39 — similar to conditions from that earlier setup.
Cardano: Strong Positioning vs. Bitcoin
Cardano’s ratio against BTC is also hovering around comparable 2019 price structure zones. Analysts say its risk score remains low — potentially signaling room for a stronger move if liquidity improves.
Still a Market Full of Unknowns
While the parallels to 2019 are exciting for altcoin bulls, caution remains key. Crypto remains tightly linked to risk sentiment, and volatility can return quickly, especially as regulatory developments continue to shape the market.
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