Federal Reserve Announces $40B Treasury Purchases, Eases Liquidity

The Federal Reserve announced a new Treasury Reserve Management Purchases program on December 10, 2025, introducing $40 billion in Treasury bill purchases starting December 12.

This move is viewed as “mild quantitative easing,” positively impacting cryptocurrency markets by enhancing USD liquidity.

Market Reactions and Cryptocurrency Implications

The Federal Reserve’s introduction of a Treasury Reserve Management Purchases (RMP) plan involving $40 billion aims to maintain sufficient reserves. Announced on December 12, this program represents a shift towards provided market liquidity. The move aligns with the Federal Open Market Committee’s (FOMC) interest rate reduction decision on December 10.

The shift to buying Treasury securities marks a departure from the balance reduction strategy, supporting liquidity management through a new set of purchases characterized by some as “stealth QE.” Analysts and market participants have interpreted this development as a potentially favorable policy shift, indicating easier liquidity conditions.

Industry reactions underscore anticipation of positive implications for the broader financial market, particularly for risk assets. Coinbase Institutional highlighted the supportive effect of increased USD liquidity on cryptocurrency valuations.

Market Data

Did you know? Historical comparisons to previous liquidity expansions have shown positive impacts on risk assets such as BTC and ETH, highlighting similar potential effects from the Federal Reserve’s current strategy.

Bitcoin (BTC) is trading at $90,366.13, with a market cap of $1.80 trillion and a 24-hour trading volume of $82.93 billion. Recent data from CoinMarketCap indicates a 2.01% decline over 24 hours and 11.64% drop over the last 30 days, reflecting volatile trends.

Insights from the Coincu research team suggest that the Federal Reserve’s latest liquidity measures could prompt increased interest in cryptocurrencies such as BTC and ETH. With potential regulatory impacts still unfolding, the broader market expects technological advancements and financial repositioning.