🚨🇺🇸 FED READY TO END QT AND START WITH T-BILLS: WHAT IT MEANS FOR BITCOIN 🇺🇸🚨
The Federal Reserve has announced that it will end “Quantitative Tightening” (QT) starting December 1st, immediately after a 25 basis points rate cut, and will begin to reinvest the released liquidity into short-term Treasury Bills.
This is a significant turnaround in American monetary policy: the Fed is halting the reduction of its balance sheet and returning to injecting liquidity into the financial system.
In 2019, a similar operation coincided with a 35% drop in Bitcoin, amidst growing uncertainty and a flight towards traditional equity.
However, today the scenario is different.
The Treasury market is under pressure from rising public debt, and purchases of T-Bills could improve systemic liquidity, indirectly supporting risk assets, including digital ones.
The Fed's reinvestment may, however, generate volatility: if the excess liquidity remains confined within the banking circuit, the benefit for the crypto market could be limited.
But if liquidity expands towards funds and ETFs, the capital flow could support Bitcoin in the short term.
Everything will depend on a delicate balance: liquidity yes, but without rekindling inflationary pressures.