AbdulSamad990

FED JUST TOOK ONE STEP CLOSER TO QE 🚨
Yesterday, the Fed injected $13.5B into the banking system, the biggest one-day liquidity boost since 2020.
And it happened on the exact day QT officially ended.
This is not a normal move.
Banks borrow from each other overnight.
But last night, many banks suddenly needed cash at the same time.
When that happens, overnight borrowing rates jump fast, a clear sign of liquidity stress inside the system.
This same pattern appeared in:
• 2019 (repo market spike)
• Early 2020 (funding stress before Covid response)
Both times, the Fed stepped in aggressively to stabilise the system.
They did the same thing again yesterday.
A $13.5B injection in one day means the Fed didn’t want this stress to spread through markets.
It does not signal a banking crisis, it signals that liquidity tightened quickly and the Fed responded instantly.
QT is already over.
Liquidity is being added again.
This is not an official QE, but it is early-stage easing, the first step the Fed takes before shifting policy more broadly.
Why does this matter for markets?
Liquidity direction drives markets more than anything else.
When the Fed removes liquidity (QT), risk assets struggle.
When the Fed adds liquidity, markets get support.
This injection shows:
• The Fed is alert to funding stress
• The Fed will step in when liquidity tightens.
• The market is no longer in a pure tightening environment.
• Conditions are shifting toward neutral to easing
This shift matters for crypto especially.
What could happen in the coming months for crypto?
Short-term volatility could stay, but the medium-term setup becomes more favorable because:
1. Liquidity is no longer being drained
Ending QT + emergency liquidity is a meaningful shift.
2. The Fed may have to provide more liquidity
If funding markets remain tight, more injections could follow.
3. Rate cuts will eventually align with improving liquidity
When both happen together, crypto historically performs strongly.

$WCT
#Fed