QT Program Ends Tomorrow — Here’s Why It Matters More Than You Think
While most are focused on rate cuts, a bigger shift is quietly happening: the Fed is officially ending its Quantitative Tightening (QT) program.
Since 2022, the Fed has been reducing its balance sheet by letting bonds and mortgage assets mature without reinvestment. Over $3 trillion has been drained from the system during this period — putting constant pressure on risk assets like crypto.
But now, that’s changing.
Instead of letting those maturing assets simply vanish, the Fed will begin redirecting the cash into U.S. Treasuries. This isn’t quite Quantitative Easing (QE), but it marks the end of aggressive tightening. It’s called “soft easing.”
What does this do?
- It slows down liquidity drain.
- It adds steady demand to the Treasury market.
- It frees up institutional capital for other assets — including crypto.
Back in 2019, when the Fed ended QT, Alt/BTC pairs entered a long uptrend. The full rally didn’t come until 2020, but the foundation was laid by this shift in liquidity flow.
This time might follow a similar path. No sudden pump — but a major headwind is being removed. That opens the door for a stronger market in 2026 and beyond.
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