The post Fed Ends QT, Injects Liquidity; Why Is Bitcoin Falling? appeared on BitcoinEthereumNews.com. The Federal Reserve is halting its balance sheet reduction (QT), a move that signals a significant dovish policy shift. The Fed also injected $29.4 billion via its standing repo facility, the largest such operation since the pandemic. This macro liquidity shift contrasts sharply with Bitcoin’s $1.34 billion in ETF outflows and a 10% price drop. The Fed has signalled the end of its long-running balance sheet runoff, a big change in monetary policy. After reducing its asset portfolio from nearly $9 trillion down to about $6.6 trillion, the central bank stated it will stop this reduction and start reinvesting money from bonds that are paid off, effectively putting its quantitative tightening (QT) on hold. At the same time, the Fed injected about $29.4 billion into the banking system via its standing repo facility (SRF) on October 31, the largest such operation since the pandemic. Officials stated the move was a direct response to rising pressure in funding markets, as the cash reserves held by banks fell close to $2.8 trillion. Related: ETF Outflows Join Fed Caution To Make November A Tough Start For Bitcoin For crypto markets, analysts view this as a possible catalyst for a renewed Bitcoin rally. With liquidity drying up during QT, risk assets like Bitcoin had trouble performing well. Now that the trend is reversing, it could pave the way for new money to flow back in. In other words, when the Fed stops pulling money out of the economy, investors may start looking for better returns again, making cryptocurrencies a more attractive option. Bitcoin isn’t doing great Over the last four days, spot Bitcoin ETFs have suffered heavy outflows of over $1.34 billion. This suggests that big investors are still hesitant, even with the Fed changing its stance. As such, it seems that while the… The post Fed Ends QT, Injects Liquidity; Why Is Bitcoin Falling? appeared on BitcoinEthereumNews.com. The Federal Reserve is halting its balance sheet reduction (QT), a move that signals a significant dovish policy shift. The Fed also injected $29.4 billion via its standing repo facility, the largest such operation since the pandemic. This macro liquidity shift contrasts sharply with Bitcoin’s $1.34 billion in ETF outflows and a 10% price drop. The Fed has signalled the end of its long-running balance sheet runoff, a big change in monetary policy. After reducing its asset portfolio from nearly $9 trillion down to about $6.6 trillion, the central bank stated it will stop this reduction and start reinvesting money from bonds that are paid off, effectively putting its quantitative tightening (QT) on hold. At the same time, the Fed injected about $29.4 billion into the banking system via its standing repo facility (SRF) on October 31, the largest such operation since the pandemic. Officials stated the move was a direct response to rising pressure in funding markets, as the cash reserves held by banks fell close to $2.8 trillion. Related: ETF Outflows Join Fed Caution To Make November A Tough Start For Bitcoin For crypto markets, analysts view this as a possible catalyst for a renewed Bitcoin rally. With liquidity drying up during QT, risk assets like Bitcoin had trouble performing well. Now that the trend is reversing, it could pave the way for new money to flow back in. In other words, when the Fed stops pulling money out of the economy, investors may start looking for better returns again, making cryptocurrencies a more attractive option. Bitcoin isn’t doing great Over the last four days, spot Bitcoin ETFs have suffered heavy outflows of over $1.34 billion. This suggests that big investors are still hesitant, even with the Fed changing its stance. As such, it seems that while the…