{"id":17126,"date":"2025-12-02T19:51:06","date_gmt":"2025-12-02T19:51:06","guid":{"rendered":"https:\/\/bitunikey.com\/news\/fed-halts-qt-quantitative-tightening-and-bitcoin-traders-are-watching-closely\/"},"modified":"2025-12-02T19:51:10","modified_gmt":"2025-12-02T19:51:10","slug":"fed-halts-qt-quantitative-tightening-and-bitcoin-traders-are-watching-closely","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/fed-halts-qt-quantitative-tightening-and-bitcoin-traders-are-watching-closely\/","title":{"rendered":"Fed halts QT (quantitative tightening)\u2014and Bitcoin traders are watching closely"},"content":{"rendered":"

<\/p>\n

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The Federal Reserve officially ended its quantitative tightening, or QT, program on Dec. 1, freezing its balance sheet at $6.57 trillion. The move signals a shift in U.S. monetary policy with significant implications for Bitcoin and broader crypto markets.<\/p>\n

\n
\n Summary<\/span>\n <\/div>\n
\n
    \n
  • The Fed ended its three-year Quantitative Tightening program, freezing its balance sheet at $6.57T.<\/li>\n
  • Bitcoin slid back into the $90,000 region on Dec. 2.<\/li>\n
  • Analysts say the shift could become a tailwind for crypto, echoing patterns seen after the 2019 QT halt.<\/li>\n<\/ul><\/div>\n<\/div>\n

    <\/p>\n

    The move caps a three-year run in which the Fed drained $2.39 trillion from the financial system\u2014its largest liquidity withdrawal in history. Treasury runoff has now been halted, though the Fed will continue reducing mortgage-backed securities by $35 billion each month. The decision comes as bank reserves sit near $2.89 trillion, a level officials worried could risk market instability if QT continued.<\/p>\n

    Bitcoin (BTC) traded around $92,000 at last check on Dec. 2, down over 16% over the course of a month. Roughly $1 billion in leveraged crypto trades were liquidated during Monday\u2019s selloff, underscoring how thin liquidity can magnify volatility in risk assets.<\/p>\n

    Investors look for historical clues <\/h3>\n

    When the Fed paused QT in 2019, markets rallied 17% within weeks, though Bitcoin initially fell about 35% before delivering major gains in early 2020.<\/p>\n

    This cycle, however, looks different. Interest rates have already been cut to 3.75%\u20134.00%, the once-massive Overnight Reverse Repo facility has all but drained, and institutional participation has surged. Spot Bitcoin ETFs now hold more than $50 billion, drawing steady inflows from firms such as BlackRock and Fidelity.<\/p>\n

    If history rhymes, the Fed\u2019s policy shift could set the stage for a rebound. As Fundstrat\u2019s Tom Lee told CNBC, the QT halt is \u201ca tailwind\u201d for both Bitcoin and equities heading into 2026.<\/p>\n

    <\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

    The Federal Reserve officially ended its quantitative tightening, or QT, program on Dec. 1, freezing its balance sheet at $6.57 trillion. The move signals a shift in U.S. monetary policy…<\/p>\n","protected":false},"author":1,"featured_media":17052,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-17126","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/17126","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=17126"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/17126\/revisions"}],"predecessor-version":[{"id":17127,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/17126\/revisions\/17127"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/17052"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=17126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=17126"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=17126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}