{"id":117687,"date":"2025-12-03T20:00:24","date_gmt":"2025-12-03T20:00:24","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=117687"},"modified":"2025-12-03T20:00:24","modified_gmt":"2025-12-03T20:00:24","slug":"us-fed-has-ended-quantitative-tightening-but-why-is-the-bitcoin-price-still-below-100000","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=117687","title":{"rendered":"US Fed Has Ended Quantitative Tightening, But Why Is The Bitcoin Price Still Below $100,000?"},"content":{"rendered":"

The Federal Reserve has officially brought its multi-year quantitative tightening program to a close<\/a>, freezing its balance sheet at about $6.57 trillion after draining more than $2.3 trillion from the system since 2022.\u00a0<\/p>\n

The Federal Reserve\u2019s decision to formally end quantitative tightening has created a sense of anticipation across the crypto market. Liquidity inflows have shaped every major crypto cycle, and removing the multi-year drain on liquidity is expected to set the stage<\/a> for healthier crypto market conditions and see the Bitcoin price push above $100,000 in the coming days.<\/p>\n

Policy Shift Meets A Market Still Searching For Direction<\/h2>\n

The Fed has frozen its balance sheet at roughly $6.57 trillion after three years of balance-sheet reduction. Treasury runoff has stopped on December 1, though mortgage-backed securities will continue declining slowly.\u00a0<\/p>\n

Ending QT means that the Fed is stepping away from the rapid balance-sheet reduction that tightened financial conditions throughout 2023 and 2024. The move comes after bank reserves fell to levels that threatened short-term funding stability, and the Fed made the move to halt any further liquidity drain.<\/p>\n

Crypto investors are expecting the end of QT to relieve some of the selling pressure<\/a> that has contributed to the crypto industry in recent months. This is due to historical comparisons of how the industry played out in previous ends to QT.\u00a0<\/p>\n

In 2019, when the Fed last ended QT, digital assets bottomed within weeks <\/a>and then entered a strong recovery phase. That period represented a decisive low for altcoins and preceded Bitcoin\u2019s rise from roughly $3,800 to $29,000 over the next year and a half.<\/p>\n

Interestingly, the entire crypto market\u2019s short-term behavior is starting to show signs of bullishness. Particularly, the entire market is up by 7.2% in the past 24 hours, with Bitcoin leading the charge. However, cryptocurrencies are facing a different macro environment today,<\/a> and the outlook is whether Bitcoin and other cryptocurrencies can go on another extended bullish rally in the coming months.<\/p>\n

Why Is Bitcoin\u2019s Reaction Delayed?<\/h2>\n

Ending QT is a meaningful turning point, but it does not automatically flood the system with fresh liquidity. Benjamin Cowen, founder of IntoTheCryptoverse, offers one of the clearest explanations<\/a> for what to expect.\u00a0<\/p>\n

He noted that in 2019, the Fed announced QT would end on August 1, but the balance sheet continued falling through mid-August because previously scheduled Treasury maturities had not yet settled. It wasn\u2019t until early 2020 that Bitcoin started to experience explosive gains. According to Cowen, the same dynamic applies now.\u00a0<\/p>\n

Therefore, the Federal Reserve\u2019s balance sheet could continue edging lower for a few more weeks, meaning the first meaningful uptick in liquidity may not show up until early 2026.<\/a> This delay suggests that traders hoping for an immediate boost or a quick return of Bitcoin above $100,000 are simply ahead of the cycle. The tightening phase has ended, but the actual recovery in liquidity has yet to begin.<\/a><\/p>","protected":false},"excerpt":{"rendered":"

The Federal Reserve has officially brought its multi-year quantitative tightening program to a close, freezing its balance sheet at about $6.57 trillion after draining more than $2.3 trillion from the system since 2022.\u00a0 The Federal Reserve\u2019s decision to formally end quantitative tightening has created a sense of anticipation across the crypto market. Liquidity inflows have […]<\/p>\n","protected":false},"author":0,"featured_media":117688,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-117687","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/117687"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=117687"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/117687\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/117688"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=117687"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=117687"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=117687"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}