Fed signals ’end of QT’: What does it mean for Bitcoin price?

Yashu Gola 1 minute ago Fed signals ’end of QT’: What does it mean for Bitcoin price? Bitcoin fell 35% after the Fed ended QT in 2019 and began cutting rates, prompting fears that BTC may decline in the coming months. Listen 0:00 6 Market Analysis COINTELEGRAPH IN YOUR SOCIAL FEED Key takeaways : The Fed ending QT and reinvesting in T-bills quietly boosts liquidity. Analysts are divided over how this affects BTC price, with bulls anticipating a $180,000 top. Bitcoin ( BTC ) dropped 3.67% to $107,925 after the Federal Reserve announced a 25-basis-point rate cut and confirmed plans to conclude its balance-sheet runoff starting in December, effectively signaling the end of quantitative tightening (QT). BTC/USD daily chart. Source: TradingView How could the end of QT impact Bitcoin price? Starting Dec. 1, the Fed will stop allowing its bond holdings to shrink and begin reinvesting maturing debt into short-term Treasury bills (T-bills). Federal Reserve’s balance sheet as of October 2025. Source: FRED In simple terms, when the Fed’s old bonds get paid back, instead of destroying that money (shrinking its balance sheet), it’ll use the funds to buy new short-term government debt. Bitcoin fell 35% after the Fed ended QT 2019 and rate cuts began, according to data highlighted by analyst Brett . That is despite growth in US stock markets at that time, which typically move in tandem with BTC. BTC/USD daily chart. Source: Brett The Bitcoin market didn’t recover until the Fed launched full-scale quantitative easing (QE) in early 2020, amid concerns about COVID-19. “I would say we’re at peak of the 4 year cycle now though…which may not be any better,” Brett said, adding : “If we get QE, I don’t see it happening until late next year.” Meanwhile, some signs of a potential bear market starting are being noticed. Analyst Jesse Olson pointed to a “pending bearish MACD crossover” on Bitcoin’s three-week chart, a technical signal that preceded a 69% market correction in 2021-2022. BTC/USD three-week candle chart. Source: TradingView/Jesse Olson Therefore, if history repeats, then Bitcoin faces downside risks before any new liquidity-driven rally emerges. Fed’s stealth QE may help BTC get to $180,000 Economist Lyn Alden said that the Fed’s decision to reinvest maturing debt into T-bills effectively creates new money, even if the agency avoids calling it QE. Source: X When the Fed injects cash into the financial system by buying T-bills, it effectively grants more cash reserves to the sellers of those Treasurys (banks, funds). More reserves mean more liquidity available to be deployed into markets. Bitcoin’s price may climb further toward $130,000-180,000 range by 2026, according to analyst Bedouin , who said that growing liquidity is overriding BTC’s four-year cycle concerns. Related: Bitcoin price to 6X in 2026? M2 supply boom sparks COVID-19 comparisons That aligns with year-end BTC price targets shared by top Wall Street institutions earlier this year, including JPMorgan and Standard Chartered . This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. # Bitcoin # Federal Reserve # Bitcoin Price # Bitcoin Analysis # Markets # Quantitative Easing # BTC Markets # Market Analysis Add reaction