đš JUST IN â Fed stops QT, then starts a QE-lite T-bill buyback đš
The Fed has quietly ended quantitative tightening after shrinking its balance sheet by roughly $2.4 trillion since 2022, and today it kicks off a short-term reserve-management program. The New York Fed will buy about $40 billion of short-dated Treasury bills over the next ~30 days to keep reserves ample and steady.
This isnât positioned as a full return to QE â officials call it a technical step to smooth money markets and prevent year-end funding strains, not a fresh round of broad monetary stimulus. Still, adding $40B of T-bill demand is a material liquidity injection and markets will treat it like meaningful balance-sheet expansion.
Why traders should care: liquidity flows matter. When the Fed floods short-term markets with cash, risk assets tend to benefit â and Bitcoin historically soaks up macro liquidity like a sponge. Easier funding and growing reserves increase the odds that crypto and other risk assets get a lift into 2026. Analysts are already speculating that this technical move could bolster risk appetite and set the stage for a higher Bitcoin in 2026.
Watchlist: âą How fast the Fedâs bill purchases accelerate month to month (the Desk will publish a rolling 30-day schedule).
âą Money-market rates and repo spreads â if they calm, the operation worked; if they widen, expect more intervention.
âą Crypto flows and ETF/institutional demand â those will show whether liquidity actually reaches risk assets.
Bottom line: technically itâs âreserve management,â not QE â but $40B of T-bill buying is still a big tide change. For traders and long-term speculators, that tide could lift assets (Bitcoin included) into 2026 â so keep an eye on data and flows.
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