The post Federal Reserve Considers Action amid Year-End Liquidity Pressure appeared on BitcoinEthereumNews.com. Key Points: Federal Reserve’s potential actions amid liquidity strain as QT ends. Wall Street expects the Fed to inject liquidity. Bitcoin (BTC) and Ethereum (ETH) historically react to liquidity shifts. Federal Reserve Chairman Jerome Powell is set to address liquidity issues in the $12.6 trillion U.S. money market during this week’s FOMC meeting in Washington, D.C. The Fed’s potential policy shift could significantly influence BTC and ETH markets, as easing liquidity pressures generally support stronger risk asset performances. Fed’s Potential Policy Shift Amid $12.6 Trillion Market Pressure Following the halt of quantitative tightening (QT), the Federal Reserve may adopt new measures to manage year-end liquidity pressure affecting the money market. Powell and the Federal Reserve are reportedly considering resuming security purchases or other actions to supplement reserves and ease market strains. The end of QT signals that the Federal Reserve stopped reducing its balance sheet, with growing pressure on funding costs. The potential move to rebuild reserves could mark a significant policy shift in maintaining market stability. Market participants are closely monitoring the Federal Reserve’s actions. There is anticipation that Federal Reserve Chair Jerome Powell will indicate this shift at the press conference. Interest rates and liquidity measures will likely be key topics during official statements. Historical Liquidity Moves Tied to Crypto Market Trends Did you know? In 2019, a similar liquidity crunch prompted the Federal Reserve to inject reserves, marking the start of a major crypto bull market by increasing demand for high-beta assets like Bitcoin and Ethereum. Bitcoin (BTC), currently priced at $91,138.27 with a market cap of $1.82 trillion, shows a 1.32 percent rise over 24 hours, according to CoinMarketCap. Despite negative trends over 30 and 60 days, BTC maintains 58.82 percent market dominance. Data as of December 9, 2025, shows a trading volume of $54.47 billion.… The post Federal Reserve Considers Action amid Year-End Liquidity Pressure appeared on BitcoinEthereumNews.com. Key Points: Federal Reserve’s potential actions amid liquidity strain as QT ends. Wall Street expects the Fed to inject liquidity. Bitcoin (BTC) and Ethereum (ETH) historically react to liquidity shifts. Federal Reserve Chairman Jerome Powell is set to address liquidity issues in the $12.6 trillion U.S. money market during this week’s FOMC meeting in Washington, D.C. The Fed’s potential policy shift could significantly influence BTC and ETH markets, as easing liquidity pressures generally support stronger risk asset performances. Fed’s Potential Policy Shift Amid $12.6 Trillion Market Pressure Following the halt of quantitative tightening (QT), the Federal Reserve may adopt new measures to manage year-end liquidity pressure affecting the money market. Powell and the Federal Reserve are reportedly considering resuming security purchases or other actions to supplement reserves and ease market strains. The end of QT signals that the Federal Reserve stopped reducing its balance sheet, with growing pressure on funding costs. The potential move to rebuild reserves could mark a significant policy shift in maintaining market stability. Market participants are closely monitoring the Federal Reserve’s actions. There is anticipation that Federal Reserve Chair Jerome Powell will indicate this shift at the press conference. Interest rates and liquidity measures will likely be key topics during official statements. Historical Liquidity Moves Tied to Crypto Market Trends Did you know? In 2019, a similar liquidity crunch prompted the Federal Reserve to inject reserves, marking the start of a major crypto bull market by increasing demand for high-beta assets like Bitcoin and Ethereum. Bitcoin (BTC), currently priced at $91,138.27 with a market cap of $1.82 trillion, shows a 1.32 percent rise over 24 hours, according to CoinMarketCap. Despite negative trends over 30 and 60 days, BTC maintains 58.82 percent market dominance. Data as of December 9, 2025, shows a trading volume of $54.47 billion.…

Federal Reserve Considers Action amid Year-End Liquidity Pressure

2025/12/10 01:38
Key Points:
  • Federal Reserve’s potential actions amid liquidity strain as QT ends.
  • Wall Street expects the Fed to inject liquidity.
  • Bitcoin (BTC) and Ethereum (ETH) historically react to liquidity shifts.

Federal Reserve Chairman Jerome Powell is set to address liquidity issues in the $12.6 trillion U.S. money market during this week’s FOMC meeting in Washington, D.C.

The Fed’s potential policy shift could significantly influence BTC and ETH markets, as easing liquidity pressures generally support stronger risk asset performances.

Fed’s Potential Policy Shift Amid $12.6 Trillion Market Pressure

Following the halt of quantitative tightening (QT), the Federal Reserve may adopt new measures to manage year-end liquidity pressure affecting the money market. Powell and the Federal Reserve are reportedly considering resuming security purchases or other actions to supplement reserves and ease market strains.

The end of QT signals that the Federal Reserve stopped reducing its balance sheet, with growing pressure on funding costs. The potential move to rebuild reserves could mark a significant policy shift in maintaining market stability.

Market participants are closely monitoring the Federal Reserve’s actions. There is anticipation that Federal Reserve Chair Jerome Powell will indicate this shift at the press conference. Interest rates and liquidity measures will likely be key topics during official statements.

Historical Liquidity Moves Tied to Crypto Market Trends

Did you know? In 2019, a similar liquidity crunch prompted the Federal Reserve to inject reserves, marking the start of a major crypto bull market by increasing demand for high-beta assets like Bitcoin and Ethereum.

Bitcoin (BTC), currently priced at $91,138.27 with a market cap of $1.82 trillion, shows a 1.32 percent rise over 24 hours, according to CoinMarketCap. Despite negative trends over 30 and 60 days, BTC maintains 58.82 percent market dominance. Data as of December 9, 2025, shows a trading volume of $54.47 billion.

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 15:32 UTC on December 9, 2025. Source: CoinMarketCap

Insights from Coincu reveal that the Fed’s engagement may lead to a revival in liquidity that can spur interest in risk assets. Historically, increased liquidity favorably impacts market volatility and activity across Bitcoin, Ethereum, and other crypto assets.

Source: https://coincu.com/markets/fed-liquidity-pressure-impact-btc-eth/

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

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