Fed Ends QT! Crypto’s Melt-Up Begins? 🚨💰

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On December 1, 2025, the Federal Reserve (Fed) will officially end Quantitative Tightening (QT), freezing its balance sheet at $6.57 trillion after draining $2.39 trillion from the system.

Analysts point to parallels with 2019, when the last QT pause coincided with a major bottom in altcoins and a surge in Bitcoin. With liquidity returning and interest rates already cut to 3.75-4.00%, crypto markets are bracing for a potentially bullish shift. 🧠💸

Fed Ends QT Tomorrow – Crypto Eyes 2019-Style Liquidity Boost

The Fed’s halt of its balance sheet runoff comes amid strained bank reserves, now roughly $3 trillion, or about 10% of US GDP. The Overnight Reverse Repo facility, which previously absorbed $2.5 trillion in excess cash, has dropped to near zero, removing a key liquidity buffer. 🚫💧

October 2025 saw the Secured Overnight Financing Rate spike to 4.25%, exceeding the Fed’s target range. The Standing Repo Facility recorded a single-day activation of $18.5 billion, reflecting persistent demand for liquidity. 📈📉

FOMC minutes from October 29 detail operational adjustments designed to improve policy transmission. 📜

the Standing Repo Facility, initially an emergency tool, now functions as a permanent daily liquidity provider, effectively embedding the Fed in Treasury market operations. 🏦

Researcher Shanaka Anslem describes this as the “Standing Repo Era,” a structural transformation with lasting implications for global finance. 🌍

THE FED JUST CROSSED A THRESHOLD NO ONE IS DISCUSSING

December 1, 2025. The Federal Reserve terminates Quantitative Tightening. Balance sheet frozen at $6.57 trillion. The largest liquidity withdrawal in central banking history ends after draining $2.39 trillion from the…

– Shanaka Anslem Perera ⚡ (@shanaka86) November 30, 2025

Historical Parallels and Crypto Market Implications

Crypto analysts are drawing direct comparisons to August 2019, when the Fed ended QT, and altcoins bottomed. 🦄

$OTHERSBTC & $WALCL (Fed Balance Sheet)

The End of QT marked the bottom on $OTHERSBTC back in August 2019

This time, QT ends on December 1, 2025 👀

The $Alts Supercycle begins tomorrow!

– CryptoBullet (@CryptoBullet1) November 30, 2025

While past performance is not a guarantee, key indicators support cautious optimism: 🎯

  • Bitcoin dominance is below 60%, 📉
  • The global M2 money supply is rising, and historically leads BTC by 10-12 weeks. 💰

The end of QT could inject up to $95 billion per month in liquidity, supporting large-cap cryptocurrencies including Bitcoin, Ethereum, Solana, and BNB. 🚀

Gold’s recent all-time highs provide additional correlation, as BTC often lags gold price moves by roughly 12 weeks. 🏆

Meanwhile,the Fed’s December 10 FOMC meeting occurs amid unusual conditions: 🧩

  • A 43-day government shutdown erased two months of CPI data, leaving policymakers without fresh inflation figures. 🚧
  • CPI currently sits at 3%, above the Fed’s 2% target. 📊
  • Treasury Secretary Scott Bessent confirmed the Fed is considering additional rate cuts after October’s 25-bps reduction. 📈

The US federal debt exceeds $36 trillion, with annual interest costs above $1 trillion. The Standing Repo Facility now enables rapid monetization of Treasury collateral, representing a structural shift with long-term market implications. 🏦

Some crypto analysts anticipate an immediate rally following QT’s end, while others see a smaller altseason within 2-3 months and a larger market cycle in 2027-2028. 🌀

🚨 Fed Liquidity is Here: The Crypto Melt-Up Starts Now 🚨

The Fed is on the verge of ending QT, just like 2019 and that means one thing: Liquidity is coming back.

If you know what this means for #Bitcoin and altcoins, you should be excited.

Here’s why I think this is the…

– VirtualBacon (@virtualbacon) October 28, 2025

Consensus holds that liquidity, rather than hype or Bitcoin halvings, has historically driven crypto cycles. 🧠

December 1 marks a critical turning point as the Fed’s liquidity pivot could remove one major obstacle for risk assets. The move could set the stage for crypto markets to respond, whether through a mini rally or the early stages of a broader Supercycle. 🚀

While QT ends on December 1, the Fed emphasized that future adjustments to the federal funds rate will depend on incoming data and changing economic risks. 📈

This signals that the Fed is keeping monetary policy flexible, prepared to adjust rates or other measures if necessary. 🔄

Investors should watch interest rate guidance, Treasury liquidity operations, and M2 money supply trends in the coming weeks. 📅

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2025-11-30 23:18