FED PUMPING 105 BILLION USD: IS LIQUIDITY REVERSING?
The U.S. Federal Reserve has recently added approximately 105 billion USD to its balance sheet – the largest increase since the banking crisis in 2023. This is a notable signal amid the Fed's ongoing quantitative tightening (QT) for over a year.
Essentially, this move indicates a partial reversal of QT, at least in the short term. When the Fed expands its balance sheet, system liquidity improves, and financial conditions become less strained. History shows such periods typically benefit risk assets: stocks, crypto, and commodities.
However, a closer look at the broader picture is necessary. Early January 2026 data shows the balance sheet decreased by about 67 billion USD, reflecting short-term technical fluctuations possibly related to repo operations, the Treasury General Account, or year-end seasonal factors.
The key message is not that "the Fed has fully reversed course," but rather:
👉 Liquidity is no longer being squeezed in one direction as before.
In this environment, markets tend to be more sensitive to macro news, and risk assets often react early, before official policy changes. Do you think the current price of $BTC is cheap enough to buy more?