Original Alert (Reposted & Amplified):
🇺🇸 Fed will end QT tomorrow after running it for 3+ years.
Last time they did this in 2019, it marked the pico bottom for Alt/BTC.
This is buzzing across crypto circles today – a timely heads-up as markets eye liquidity shifts. Let's break it down with context, history, and why it's got traders on edge.
#### Quick QT Primer
Quantitative Tightening (QT) is the Fed's "reverse money printer": since June 2022, they've let ~$2 trillion in bonds mature without reinvesting, shrinking their balance sheet from ~$9T to ~$6.6T. It drains liquidity from the system, making borrowing pricier and risk assets (like stocks/crypto) sweat. Ending QT flips the script – starting Dec 1, 2025, they'll reinvest maturing securities, stabilizing reserves and potentially flooding markets with fresh liquidity.
This pivot was greenlit in the Oct 28-29 FOMC meeting, with "almost all" officials on board to avoid 2019-style repo market chaos. Fed Chair Powell cited slowing job growth and tightening financial conditions as the trigger – no more vacuuming up reserves.
#### The 2019 Parallel: Alt/BTC's "Pico Bottom"
Spot on with the reminder – history rhymes hard here. In Sept 2019, QT wrapped after ~2 years amid spiking short-term rates (SOFR hit 5.34%, echoing today's strains). What followed?
- Immediate liquidity boost: Fed injected billions via repo ops, paving the way for rate cuts.
- Alt/BTC explosion: The "OTHERS/BTC" ratio (altcoins vs. Bitcoin) bottomed at a multi-year low, then surged 630% over 845 days. Tokens like LINK/BTC, ADA/BTC, and XRP/BTC reset to undervalued zones – e.g., LINK at ~$2 equiv (now $13), ADA at ~$0.05 (now $0.40). Many alts 10x-100x'd into 2021's bull run.
- BTC's path: Dipped 35% short-term post-QT (despite S&P gains), but then tripled to $64K by late 2021.
Analysts like Crypto Rover and Gambardello are calling it a "2019 buy signal" redux: Current charts show LINK/ADA/XRP hitting identical BTC-pair lows, but with resolved regs (e.g., XRP's SEC win) and institutional inflows (Chainlink reserves up 89K tokens). Projections? OTHERS/BTC could +300% if patterns hold, sparking "altseason" by Q1 2026.
#### 2025 Implications for Crypto
- Bull Case: Ending QT = stealth QE. Liquidity floods in, risk-on mode activates. BTC could hold $80K+ (per Arthur Hayes) and rally to $180K; alts rotate hard if BTC dominance breaks its uptrend (already testing multi-year support). Small-caps and DeFi could parabolic.
- Bearish Risks: Short-term volatility – BTC's dipped 3-5% on similar news lately. If Powell's Dec 1 speech (~8 PM ET) hints no more cuts, or if reserves stay "abundant" too long, we could see a 2019-style BTC pullback before liftoff.
- Broader Vibes: Ties into rate cut odds (67% for Dec), ETF flows, and macro (PMI expansion). X chatter's electric – threads like @MaxCrypto's post are racking likes, with replies hyping "melt-up" and portfolio rebalances.
Bottom Line: If 2019 repeats, this is your "pico bottom" cue for alts – stack accordingly, but DYOR and watch Powell tomorrow. Liquidity's coming; will it ignite the next leg? 👀 #FedPivot #Altseason #Crypto
(Sourced from fresh Fed minutes, analyst charts, and X buzz – no financial advice.)
#Breaking #Reminder