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
$LUNC went vertical this week - adding almost +50% in a single impulse!
After weeks of flat, low-volume trading, the breakout came in 1 concentrated move: volumes jumped more than 10x within a few candles, and the price moved from ~0.000028 to ~0.000062 🚀
The rally, however, was driven by market structure rather than a fundamental shift:
📌 on-chain activity remains weak: Terra Classic’s DeFi TVL remains below $1M, and activity across the ecosystem is still minimal;
📌 the timing also aligns with a brief rotation into high-beta, distressed assets this week - FTT showed the same pattern.
The price swing reflected temporary demand hitting shallow books, not a revival of the Terra Classic ecosystem. Similar spikes have occurred before, typically fading once speculative flow cools.
🚨 And looking ahead, the upcoming Dec 11 sentencing of Terra founder Do Kwon may bring another wave of attention, but it does not alter the chain’s economic reality.
Prove me wrong, but for now, the only thing $LUNC ’s move signals - is volatility, not a real comeback. #CryptoRally