Is History Repeating? Fed Liquidity & the Crypto Signal No Oneโs Ignoring
Just spotted this chart and had to share โ the pattern is honestly wild.
Back in 2021, the Fed rolled out a ~$480B T-bill buyback, and shortly after, altcoins went parabolic โ a 148x move in just 117 days.
Now fast-forward to December 2025. The Fed has announced a $500B T-bill buyback, and altcoins are already up 271x in 115 days.
Why this matters ๐ When the Fed buys Treasury bills, it injects liquidity into the system. More liquidity usually means more appetite for risk โ and crypto tends to benefit first and fastest.
In both cases, the buyback came right before a major altcoin expansion. Coincidence? Maybe. But the correlation is hard to ignore.
What Iโm watching: โข Does this liquidity continue flowing into crypto? โข Does altseason extend or cool off short term? โข How long does this pressure last compared to 2021?
The big difference this time: heading into 2026 with ETFs, stronger institutions, and far more mainstream adoption than ever before.
Not financial advice โ but overlooking macro liquidity shifts is usually how generational moves get missed.
So whatโs your take: another face-melting alt rallyโฆ or is this cycle different?