- Federal Reserve’s QT termination may affect the Bitcoin market.
- Renowned KOLs view Fed’s actions as potential market boost.
- Increased market liquidity could drive Bitcoin price growth.
The Federal Reserve ended its QT program as of December 1, 2025, signaling a shift in monetary policy impactful to global markets, particularly the cryptocurrency sector.
Crypto Key Opinion Leaders interpret this change as bullish for Bitcoin, citing increased liquidity and market optimism as contributing factors.
The Federal Reserve has announced the end of its quantitative tightening (QT) program, marking a significant move in its financial operations. This decision is observed as preparing the ground for potential balance-sheet expansion among crypto and macroeconomic analysts.
Although the Federal Reserve has not explicitly labeled this move as a “QE restart,” influential crypto commentators see it as a significant shift. This decision is perceived as a strategic approach to maintaining sufficient reserve levels.
As the Federal Reserve ceases QT, there is a potential boost in liquidity, which could have positive implications for Bitcoin. Market watchers believe a growth in USD liquidity could drive up Bitcoin prices in the medium term.
Important macroeconomic analysts like Arthur Hayes and Raoul Pal suggest this action could signal a bull market.
Arthur Hayes, Co-founder, BitMEX, has repeatedly argued that “When the Fed stops draining liquidity and starts expanding its balance sheet again, that is the signal that the next Bitcoin bull market is here.”
They believe expanded balance sheets form a crucial backdrop to Bitcoin and other digital assets’ price movements.
The halt in QT is noted as a pivotal moment, potentially benefitting Bitcoin and other cryptocurrencies. Historical trends show such decisions often boost digital assets’ market value following increased liquidity influx.
Analysts suggest continued monitoring of Fed actions is crucial, as past balance-sheet expansions have often correlated with Bitcoin’s price rallies. Insights from crypto key opinion leaders emphasize a potential bullish market climate shaping due to this recent financial development.
