Fed signals ’end of QT’: What does it mean for Bitcoin price?

The Federal Reserve signaled the end of quantitative tightening (QT) starting December 1st by reinvesting maturing bond holdings into short-term Treasury bills (T-bills), which effectively stops the balance sheet runoff and injects liquidity into the system. Bitcoin initially dropped following the announcement, with analysts noting historical precedent where the end of QT in 2019 preceded a market downturn until full quantitative easing (QE) began in 2020. Technical indicators, like a pending bearish MACD crossover on the three-week chart, suggest potential downside risks for BTC. However, some economists, like Lyn Alden, argue that reinvesting in T-bills acts as a form of 'stealth QE,' increasing bank reserves and overall liquidity. This increased liquidity leads some analysts, such as Bedouin, to maintain bullish long-term targets for Bitcoin, potentially reaching $180,000 by 2026, overriding short-term cycle concerns.

(Source：Cointelegraph)