【Heavyweight】Will the Federal Reserve's "money printer" open the floodgates again in 2026? The plan to expand the balance sheet by $45 billion per month has been exposed, and the big liquidity bull market is coming!
While the world is closely watching the Federal Reserve's interest rate meeting in December, a bigger card seems to have been placed on the table corner—starting in 2026, the Federal Reserve may launch a plan to expand the balance sheet by $45 billion per month for at least six months. American bank strategists predict that $20 billion will be used for natural growth and $25 billion will be used to replenish consumed reserves.
The market has already started to stir. Vanguard executives revealed that the Federal Reserve might start purchasing short-term government bonds next year to meet the economy's growing demand for reserves. The shift in liquidity expectations is leading the cryptocurrency market into a new round of speculation.
Funds are accelerating back into Bitcoin and Ethereum, even though the overall market is in a "turbulent waiting" mode. Bitcoin is stable around $92,000, with a total market capitalization of about $3.25 trillion. Although it experienced a flash crash last week, the selling pressure was quickly absorbed, showing market resilience.
However, institutions have significant disagreements regarding future market judgments:
· "Queen of the Bull Market" Cathie Wood still holds high expectations, reaffirming the astonishing long-term goal of $1.5 million for Bitcoin.
· Standard Chartered Bank, on the other hand, has turned cautious, cutting its end-of-year price target in half to $100,000, believing that the inflow of ETF funds has slowed and the corporate buying frenzy has retreated, reducing the momentum of the bull market.
At present, traders are holding their breath, waiting for clearer signals from the Federal Reserve. The basis between futures and spot prices is narrowing, and volatility remains high, with the market oscillating between delta neutrality and arbitrage strategies; turbulence remains the main theme, but change may be on the way. $BTC $ETH $ZEC #FederalReserveFOMCmeeting $BTC
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