Why Altcoins Struggled — And Why That’s About to Change
Altcoins didn’t stay weak in the 2022–2025 cycle by accident. Their biggest enemy was the Federal Reserve’s aggressive Quantitative Tightening (QT) — a policy designed to pull liquidity out of the financial system. When the Fed drains liquidity, risk assets feel the impact first, and altcoins sit at the very end of the risk curve.$BTC
{spot}(BTCUSDT)
Why QT Crushed Altcoins
When liquidity shrinks, investors naturally avoid high-volatility assets. Stocks slow down, crypto cools off, and altcoins — the riskiest corner of the market — get hit the hardest. This liquidity squeeze was the real reason most alternative cryptocurrencies failed to gain momentum, even during moments of broader market optimism.
The Turning Point: QT Is Ending
The Federal Reserve has officially announced that Quantitative Tightening will end on December 1st, 2025 — and this marks the biggest macro shift of the entire cycle.
What This Signals
The major liquidity brake is finally being lifted.
Risk appetite starts to return.
Capital rotates back into areas that were suppressed during QT — especially altcoins.
In simple terms: the environment that kept altcoins underwater is disappearing.
What Happens Next?
Historically, the end of QT has been one of the strongest catalysts for explosive market phases. When liquidity returns, it doesn’t return slowly — it accelerates into assets with the highest potential upside.
That’s where altcoins shine.
Expected Market Reaction
Liquidity flows back into the system
Investors hunt for higher-beta plays
Altcoins begin breaking out of their long consolidation
The setup is clear: altcoins are on the verge of waking up, and the macro environment is finally turning in their favor.
Altcoins didn’t stay weak in the 2022–2025 cycle by accident. Their biggest enemy was the Federal Reserve’s aggressive Quantitative Tightening (QT) — a policy designed to pull liquidity out of the financial system. When the Fed drains liquidity, risk assets feel the impact first, and altcoins sit at the very end of the risk curve.$BTC
{spot}(BTCUSDT)
Why QT Crushed Altcoins
When liquidity shrinks, investors naturally avoid high-volatility assets. Stocks slow down, crypto cools off, and altcoins — the riskiest corner of the market — get hit the hardest. This liquidity squeeze was the real reason most alternative cryptocurrencies failed to gain momentum, even during moments of broader market optimism.
The Turning Point: QT Is Ending
The Federal Reserve has officially announced that Quantitative Tightening will end on December 1st, 2025 — and this marks the biggest macro shift of the entire cycle.
What This Signals
The major liquidity brake is finally being lifted.
Risk appetite starts to return.
Capital rotates back into areas that were suppressed during QT — especially altcoins.
In simple terms: the environment that kept altcoins underwater is disappearing.
What Happens Next?
Historically, the end of QT has been one of the strongest catalysts for explosive market phases. When liquidity returns, it doesn’t return slowly — it accelerates into assets with the highest potential upside.
That’s where altcoins shine.
Expected Market Reaction
Liquidity flows back into the system
Investors hunt for higher-beta plays
Altcoins begin breaking out of their long consolidation
The setup is clear: altcoins are on the verge of waking up, and the macro environment is finally turning in their favor.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
ZEC
569.75
-4.04%
