{"id":117434,"date":"2025-12-03T01:42:32","date_gmt":"2025-12-03T01:42:32","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=117434"},"modified":"2025-12-03T01:42:32","modified_gmt":"2025-12-03T01:42:32","slug":"will-the-end-of-quantitative-tightening-reverse-the-crypto-down-trend","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=117434","title":{"rendered":"Will the End of Quantitative Tightening Reverse the Crypto Down Trend?"},"content":{"rendered":"

The Federal Reserve\u2019s decision to halt balance-sheet runoff comes as crypto pressure spreads across the market after a sharp weekend sell-off.<\/span><\/p>\n

As per Reuters\u2019 <\/span>report<\/span><\/a>, the central bank <\/span>ended<\/span> quantitative tightening on December 1. <\/span>It will now roll over maturing Treasuries and reinvest mortgage-bond payouts into Treasury bills. The goal is to keep reserves \u201cample\u201d as money markets in the United States show signs of strain.<\/span><\/p>\n

DISCOVER: Next 1000X Crypto \u2013 Here\u2019s 10+ Crypto Tokens That Can Hit 1000x This Year<\/a><\/p>\n

Can the Fed\u2019s Policy Shift Stop Crypto Down Momentum?<\/h2>\n

Officials said the shift should help steady liquidity and keep short-term rates under control. But markets remain cautious.\u00a0<\/span><\/p>\n

With crypto down, momentum already in place, investors are watching closely to see if easier conditions can slow the slide.<\/span><\/p>\n

Under the new plan, the Fed will no longer allow Treasuries to roll off its balance sheet. Mortgage-backed security payouts will also be redirected into short-term government debt. That keeps the size of its holdings largely unchanged.<\/span><\/p>\n

Chair Jerome Powell said the bank stopped shrinking its balance sheet once reserves moved \u201csomewhat above\u201d the level needed for smooth market functioning.\u00a0<\/span>He added that money-market signals showed that the threshold had been reached.<\/span><\/p>\n

The policy change also came with a 25-basis-point rate cut, bringing the target range to 3.75%-4.00%. <\/span>Bloomberg reports <\/span>pointed<\/span><\/a> to October 29 as the turning point, the first time since 2022 the Fed stopped shrinking its Treasury holdings.<\/span><\/p>\n

Bloomberg also confirmed the end of the runoff, noting stress in money markets as year-end closes in and risks remain high.<\/span><\/p>\n

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Is Bitcoin Dominance About to Peak as Quantitative Tightening Ends?<\/h2>\n

Bitcoin last <\/span>traded<\/span><\/a> near $90,084 after a volatile session. It dipped to about $83,951 and later touched $90,108.
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