When the Fed ends Quantitative Tightening (QT), it stops draining liquidity — so, theoretically, more money stays in the system. This usually supports risk assets like crypto and stocks, because:

Liquidity returns = easier borrowing, more buying power.

Markets often rally anticipating easier financial conditions.

But here’s the catch — markets sometimes dip even after good news due to:

Profit-taking by traders who priced in the good news early.

Lingering fears about inflation, interest rates, or other macro risks.

Market uncertainty as participants digest what the Fed’s next moves might be.

So, what do I think?

Short-term volatility and some dips could happen — it’s normal in these big shifts.

But overall, ending QT is a bullish backdrop for risk assets over the medium term.

If macro conditions stay stable, crypto and stocks could see a steady rally from here.

Stay patient, watch for confirmation signals, and keep an eye on liquidity flows. It’s a classic case of “good news might cause initial jitters, then follow-through buying.”