Quantitative tightening dies tonight after bleeding $2.4T from markets since 2022.
Balance sheet capped at $6.57T – stealth QE in disguise begins immediately.
Crypto whales already front-running the flood as BTC holds $108k.
Tonight at exactly 11:59 PM EST, the Federal Reserve’s quantitative tightening experiment flatlines after three brutal years and $2.4 trillion in liquidity evaporation. The balance sheet is now frozen at $6.57T. No more runaway bond maturities. Every Treasury and MBS that rolls off going forward gets quietly reincarnated. Translation: the spigot just cracked wide open again. You already know what this means for Bitcoin.
For the first time since mid-2022, global liquidity is no longer shrinking on autopilot. Bank reserves stop bleeding, the reverse repo facility is basically empty, and excess cash has nowhere left to hide except risk assets. Spot BTC ETFs flipped to inflows last week for a reason – the smart money smells the thaw. Don’t let anyone gaslight you with “it’s just a technical adjustment.” This is the same pivot that detonated the 2020-2021 bull run. The only difference? This time BlackRock, Fidelity and corporate treasuries are already stacked to the gills with BTC exposure. There’s no slow ramp-up phase anymore – the powder keg is pre-loaded.
Yes, 2019 saw a vicious 35% shakeout right after QT ended. That ghost still haunts the charts. But zoom out: that dip was the final washout before a 7× leg higher. Today exchange balances are at 2018 lows, long-term holder supply is at all-time highs, and stablecoin liquidity is exploding again. The setup is cleaner than it’s ever been.
Powell speaks in less than ten hours. Markets are pricing an 80% chance of a December cut, and one dovish sentence could light the fuse early. Dollar weakness + liquidity flood + year-end FOMO = the exact cocktail that sends Bitcoin parabolic in Q4 of bull cycles.
Crypto Twitter is already feral. “QT RIP” trends are drowning timelines, leverage is getting reckless, and the memes write themselves. The old world spent three years trying to starve this market to death. Tonight the patient wakes up – and it’s absolutely starving. December has historically been Bitcoin’s most explosive month. With QT officially buried and the Fed forced to reinvest every dollar that matures, the path of least resistance just flipped violently higher.
Disclaimer: All content published by Crypto Pro Live (CPL) is intended solely for informational and educational purposes. It does not constitute financial, investment, or legal advice. While we strive for accuracy and reliability, CPL assumes no responsibility for any financial decisions, losses, or actions taken based on the information provided. Readers are encouraged to conduct thorough research and seek professional guidance before making investment choices.
Nikolai Carter
