Most traders are focused on the December rate cut - but the real $BTC catalyst may come from the balance-sheet side, not from interest rates:

🇺🇸 Bank of America expects the Fed to start short-term Treasury purchases in January - up to $45B/month - to prevent funding-market stress after quantitative tightening was paused.

Why? Simple. ✂ Rate cuts are already priced in - and new asset purchases are not.

🏦 Re-expanding the balance sheet adds marginal liquidity and reduces funding pressure - which helps explain why U.S. equities are near all-time highs even with higher yields.

At the same time, the economy is splitting: higher-income spending stays strong while lower-income households face tighter credit. That makes the balance-sheet signal more important for understanding how the Fed wants to manage liquidity in early 2025.

🚨 For crypto, the key question isn’t the next cut - it’s whether liquidity conditions actually improve: Bitcoin ($BTC) has reacted more to liquidity shifts than to rate guidance this year, so any return of reserve growth could matter later in Q1, even if the reaction isn’t immediate.
#RateCutExpectations