- The Fed’s latest move could lead to a massive surge in Bitcoin’s price.
- Gradual Print is the Fed’s way of injecting liquidity to ease systemic stress.
- Bitcoin could surge 3x following the Fed’s liquidity injection exercise.
Renowned professional fund manager Larry Lepard has identified an ongoing development that could lead to a significant price increase in Bitcoin.
The Fed is Expanding its Balance Sheet
According to Lepard, recent activities within the US Federal Reserve indicate a balance sheet expansion that could have a direct effect on risk assets, particularly Bitcoin. Leopard believes the unfolding events could lead to the tripling of Bitcoin’s price from its current level.
Related: Bitcoin Price Prediction: BTC Maintains Bullish Bias Despite Cooling Momentum
In a podcast, Lepard stated that the Federal Reserve implemented Quantitative Easing (QE) in the final quarter of 2025, referring to it as “Reserve Management.” He noted that the financial regulator’s actions culminated in the expansion of its balance sheet, which the prominent American microeconomist, Lyn Alden, referred to as entering a “Gradual Print” era.
What is “Gradual Print?”
By Gradual Print, Alden implied that the Federal Reserve may not embark on a radical and massive fiscal change. Instead, it will execute gradual liquidity surplus additions that keep the system running.
For context, “Gradual Print” is a phrase often used by financial analysts to describe the subtle and continuous injection of liquidity by central banks into the ecosystem. Typically, the banks do so in response to systemic stresses, instead of adopting the usual explicit stimulus programs, such as QE.
Alden’s position on the ongoing fiscal situation with the Federal Reserve is that the apex bank is being forced into a gradual expansion of its balance sheet to support the ongoing government deficit and prevent a liquidity crisis. She believes both the US Treasury and the Repo markets need the liquidity injection to function.
What Does this Imply for Bitcoin?
Historically, expanding the money market through liquidity injection has repeatedly led to a boost in the cryptocurrency market. Hence, the optimism expressed by Lepard, considering the current scenario. Based on his projection, Bitcoin’s price will double or triple following the developing situation.
Related: Arthur Hayes: China’s Quantitative Easing Will Trigger a Bitcoin Price Surge
With BTC trading at $90,520 at the time of writing, according to TradingView’s data, Lepard’s projection suggests the pioneer cryptocurrency’s price could rally to about $200,000 as a result of the Fed’s actions under the current dispensation.
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Source: https://coinedition.com/crypto-analyst-predicts-a-massive-bitcoin-rally-following-the-feds-gradual-print/
