Tomorrow the Fed Ends QT — Crypto Thinks the Melt-Up Starts Now

The Federal Reserve is set to officially end Quantitative Tightening (QT) on December 1, 2025, freezing its balance sheet at $6.57 trillion after draining $2.39 trillion. This move is drawing comparisons to August 2019, when a pause in QT coincided with a bottom in altcoins and a surge in Bitcoin, leading crypto analysts to anticipate a potential liquidity-driven rally or "melt-up."

The end of QT coincides with strained bank reserves and the Standing Repo Facility becoming a permanent daily liquidity provider, signaling a structural shift in how the Fed manages Treasury markets. While some analysts expect an immediate rally, others foresee an altseason within a few months or a larger cycle in 2027–2028, emphasizing that liquidity, historically, drives crypto cycles more than hype or halvings.

However, the Fed maintains flexibility, with the December 10 FOMC meeting approaching amid unusual economic data gaps due to a government shutdown and inflation remaining above target. Investors are advised to monitor interest rate guidance and money supply trends.

(Source：BeInCrypto)