According to several financial sources reported by BlockBeats, the US Federal Reserve officially ended its balance sheet reduction on December 1.
This change comes as US bank reserves have fallen to historically low levels related to liquidity tensions. The SOFR, secured overnight financing rate, has even begun to repeatedly test the upper limit of the interest rate corridor — a clear sign that the banking system is becoming more fragile.
For markets, including Bitcoin and digital assets, the most important message from the upcoming FOMC may therefore not be a simple 25 basis point cut… but the Fed's balance sheet strategy.
Several analysts expect the Fed to soon clarify how it plans to shift to a Reserve Management Purchase Program (RMP) — a program of regular Treasury purchases to stabilize liquidity.
According to Evercore ISI, this program could start as early as January 2026, with about $35 billion in Treasury purchases per month, representing a potential balance sheet expansion of over $400 billion per year.
🟢 Why is it important for crypto?
A return of the Fed to asset purchases could increase overall market liquidity… which is often positive for Bitcoin, Ethereum, and the entire cryptocurrency market, especially in a post-halving period.
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