Yesterday (December 1), the Federal Reserve officially ended quantitative tightening (QT) and injected $13.5 billion in liquidity into the banking system through overnight repurchase operations — the second-highest single-day injection in five years, only behind the peak of the pandemic! This is not a coincidence, but a clear signal from the Federal Reserve quietly shifting towards **quantitative easing (QE)**. Don't be fooled by the rhetoric of 'technical adjustments'; this round of 'invisible easing' has already started, and the market is about to enter a juicy liquidity feast. Let's dig into the story behind this and the impact it will have on the future. 📈
Let's state the facts: QT ends + massive injection, the liquidity floodgates are open.
End of QT: Starting today, the Federal Reserve will stop reducing its balance sheet by $50 billion per month, freezing the balance sheet at $6.57 trillion. This means no longer withdrawing funds from the market, but instead starting to 'steady the ship'.
135 billion injection: The Federal Reserve's repo operations directly pump in $13.5 billion in cash, easing year-end funding tension for banks. This is one of the largest single-day operations since the pandemic in 2020, far exceeding the peak during the internet bubble!
Signs of a shift to QEPowell may stubbornly claim 'no stimulus', but there is a consensus within the FOMC: the Reserve Management Purchase (RMP) is about to launch, and short-term treasury purchases will be restarted. Isn't this QE? Then it's 'technical QE' — historical experience shows that after the QT pause in 2019, the flood of liquidity directly ignited the stock market and crypto bull market.
In simple terms, the Federal Reserve has changed from a 'vampire' to 'Santa Claus'. The probability of a 25bp rate cut at the FOMC meeting on December 9-10 is as high as 90% — the easing cycle is here!
Market expectations for the future: a carnival of risk assets, with opportunities and traps coexisting.
This shift is not a small matter; it will reshape the asset landscape in 2026. Based on historical analogy (end of QT in 2019 → start of QE in 2020), I am optimistic and somewhat aggressive about future expectations.
Cryptocurrency: After the QT pause in 2019, Bitcoin soared from $4k to $10k; this injection will ignite a 'super cycle' — target $80k-$150k, with ETH/SOL following up over 100%.
Conclusion: Take action, don't miss the easing feast!
#特朗普加密新政 #加密市场回调 #bitcoin #ETH走势分析
The Federal Reserve's 'quiet shift' is not a secret weapon. After five years of tightening, the liquidity flood is finally thawing — this is not the end, but the starting point of a new cycle. The market never shows mercy to latecomers. What do you think? 🔥
