The Federal Reserve is now days away from halting its multi-year balance-sheet reduction, and the shift is beginning to ripple through Bitcoin and crypto discussions. The approaching end of Quantitative Tightening (QT) is a clear turn in monetary policy, and analysts are already pointing to historical parallels from the last time QT stopped. One particular […]The Federal Reserve is now days away from halting its multi-year balance-sheet reduction, and the shift is beginning to ripple through Bitcoin and crypto discussions. The approaching end of Quantitative Tightening (QT) is a clear turn in monetary policy, and analysts are already pointing to historical parallels from the last time QT stopped. One particular […]

Here’s What An End To Quantitative Tightening Means For Bitcoin And Altcoins

The Federal Reserve is now days away from halting its multi-year balance-sheet reduction, and the shift is beginning to ripple through Bitcoin and crypto discussions. The approaching end of Quantitative Tightening (QT) is a clear turn in monetary policy, and analysts are already pointing to historical parallels from the last time QT stopped. One particular analysis highlights how the previous transition from QT to liquidity expansion correlated with an altseason, leading to expectations that the same thing could happen again.

QT’s Final Days And Why It Means For Bitcoin And Crypto

Quantitative tightening has applied steady pressure on liquidity since 2022. But in its most recent policy decision (late October 2025), the US Fed decided to stop the balance-sheet runoff and cease QT as of December 1, 2025.

The end of quantitative tightening means a transition into a more accommodative environment, one where liquidity stops shrinking and investor confidence gradually returns. This is especially important for the crypto sector, which tends to flourish when monetary conditions loosen and capital becomes more fluid. 

The QT will officially end in seven days, and this will be the end of the most restrictive monetary phase in years. As seen in previous cycles, the conclusion of QT in late 2019 was the start of an intense rally across the altcoin market. As it stands, altcoins have endured several years of underperformance as investors favored Bitcoin and even gold. The macro environment has been unfriendly to high-risk assets, and this has suppressed volatility and inflows. 

However, this is expected to end once the QT is over. The premise is based on the last time QT ended, when the market witnessed many tokens rising between 10x and 100x in a matter of months. 

The same setup is forming again in November 2025, and from here we might see many leading altcoins like XRP and Dogecoin starting to outperform Bitcoin in December 2025, and many medium- to low-market-cap altcoins going on 10x and 100x rallies within the first few months of 2026.

Quantitative tightening bitcoin altcoins

OTHERS/BTC Chart. Source: @CryptoReviewing On X

The OTHERS/BTC Chart And Signs Of A Breakout

A significant part of this outlook is based on the OTHERS/BTC chart, which is a market-wide comparison between Bitcoin and the rest of the crypto market outside of the top 10 cryptocurrencies. As shown in the chart above, from the last time quantitative tightening ended, the altcoin market outperformed Bitcoin by almost 630% over the course of 845 days. 

Right now, the OTHERS/BTC action is playing out in what looks like a falling wedge pattern with a series of lower highs and lower lows. This pattern is known to be mostly bullish, and the prediction here is a bullish breakout from the upper resistance trendline. 

The chart projects another 845-day expansion period, matching the previous cycle, once QT officially ends. The estimated potential gain is more than 300% for the OTHERS/BTC ratio if a similar pattern unfolds.

Bitcoin price chart from Tradingview.com
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