The latest research from Coinbase highlights the shifting liquidity movements of the Fed that are starting to change direction. The US central bank is said to be injecting funds again through the purchase of government bonds worth $40 billion. This step is considered a soft easing that could potentially continue until April 2026.

At the same time, the benchmark interest rate has been cut to 3.50%–3.75%, marking the third cut this year. This combination is seen as a breath of fresh air for risk assets, including the crypto market.

If this liquidity trend continues, crypto could receive medium-term structural support. But remember, the market direction still heavily depends on the Fed's ongoing policies.

Follow Become a Trader so you don't miss macro insights that impact trading.

#becomeatrader #cryptonews #bitcoin #thefed #liquidity #marketupdate