Bitcoin Prospects Rise as Fed Initiates $400B Treasury Reserve Purchases, Signals Stealth QE and Softer 2026 Rate Path

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Bitcoin Prospects Rise as Fed Initiates $400B Treasury Reserve Purchases, Signals Stealth QE and Softer 2026 Rate Path

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COINOTAG News notes Coinbase Institutional reported the Fed‘s 25 basis-point rate cut aligned with expectations, while the central bank’s plan for Treasury Reserve Management purchases within 30 days signals a meaningful liquidity injection that could influence risk assets, including crypto. The operation begins with an initial size of $400 billion and a start date of December 12, suggesting an earlier-than-anticipated boost to market funding that may extend into 2026.

This shift from balance-sheet reduction toward net liquidity expansion can be viewed as mild quantitative easing or stealth QE, potentially supporting the crypto market through enhanced risk appetite and reserve growth. In futures pricing, markets appear to anticipate additional easing, with roughly 50 basis points of cuts priced in for 2026, implying a softer policy backdrop that could temper volatility and support longer-duration crypto valuations.