💸 The Fed’s Great U-Turn: Tucking Crypto Into Bed as Quantitative Tightening Ends
Breaking news from the central bank front: On October 29, 2025, the U.S. Federal Reserve (Fed) executed its second consecutive cut to the benchmark interest rate, reducing the target range by another 25 basis points to 3.75% – 4.00%.
But the real headline for crypto enthusiasts is the accompanying announcement: the Fed will officially terminate its quantitative tightening (QT) program on December 1st. satoshi2901
This is a massive shift in monetary policy that ripples directly through risk-asset markets, including Bitcoin and the wider crypto ecosystem. The dual action—cutting rates and ending QT—effectively means the central bank is slamming the brakes on draining liquidity from the financial system and is actively moving toward easing. Historically, the combination of lower rates and increased liquidity acts as potent rocket fuel for speculative assets. With the pressure of bond selling removed and the cost of borrowing lowered, institutional capital becomes more willing to move into riskier, high-growth sectors.
For the digital asset market, this pivot provides a significant macroeconomic tailwind entering the final quarter of the year. The market narrative shifts from "surviving tightening" to "positioning for easing." Smart investors are now adjusting their portfolios to reflect this influx of liquidity. Expect increased market responsiveness to any further economic data that supports continued easing. The age of 'cheap money' might be returning sooner than expected!
#FedPivot #QuantitativeEasing #CryptoLiquidity #MacroTailwinds