QT tonight ends, the liquidity tailwind for BTC has really arrived!
The Federal Reserve officially ends QT tonight at 11:59 PM Eastern Time, and this move directly sends a key signal to the crypto market!
To put it simply, the end of QT means that the market will no longer be drained of liquidity, shifting from liquidity contraction to a stable mode. The tension in interbank funding will ease, and the pressure on US Treasury yields will also decrease. The most crucial point is that the liquidity discount for high β assets like BTC will slowly disappear, and valuation recovery is a done deal.
But don't get it wrong, stopping QT is not the same as restarting QE; it simply means that the tightening cycle has completely come to an end. Going forward, the market's focus will shift from "the extent of balance sheet reduction" to "when will interest rates be lowered, and will there be balance sheet expansion," with the macro logic shifting from passively inflating bubbles to actively stabilizing the market. The policy bottom is already quite clear.
For BTC, this wave of liquidity easing is a solid positive. Coupled with previous expectations of interest rate cuts, its highly elastic characteristics are likely to be amplified. After all, in previous cases of improved liquidity environments, BTC's performance has never disappointed.
$PIPPIN
$UAI
$FOLKS
