Federal Reserve Ends Quantitative Tightening: A New Era For Crypto Liquidity Begins
Optimistic
28.1
The Federal Reserve officially ended its Quantitative Tightening program on December 1, 2025, freezing its balance sheet at $6.57 trillion and marking a pivotal shift in monetary policy that could reshape Bitcoin (CRYPTO: BTC) and cryptocurrency markets.
After draining $2.39 trillion from the financial system since June 2022, the Fed halted Treasury security runoff while continuing to reduce mortgage-backed securities at $35 billion monthly. The decision arrives as bank reserves hover around $2.89 trillion, approaching critical thresholds that threatened market stability.
What This Means For Crypto Markets
The three-year QT program represented the largest liquidity withdrawal in central banking history, putting sustained pressure on risk assets. Bitcoin currently trades around $86,600 as o
After draining $2.39 trillion from the financial system since June 2022, the Fed halted Treasury security runoff while continuing to reduce mortgage-backed securities at $35 billion monthly. The decision arrives as bank reserves hover around $2.89 trillion, approaching critical thresholds that threatened market stability.
What This Means For Crypto Markets
The three-year QT program represented the largest liquidity withdrawal in central banking history, putting sustained pressure on risk assets. Bitcoin currently trades around $86,600 as o
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This analysis was generated using Pulse AI, Glideslope's proprietary AI engine designed to interpret market sentiment and economic signals. Results are for informational purposes only and do not constitute financial advice.
