The post Federal Reserve Ends Balance Sheet Reduction Amid Liquidity Concerns appeared on BitcoinEthereumNews.com. Key Points: Federal Reserve ends QT, liquidity stress acknowledged, crypto market implications. About $400 billion annual balance sheet growth expected. Potential easing of USD liquidity impacts crypto risk sentiment positively. The Federal Reserve concluded its balance sheet reduction on December 1, signaling a shift in U.S. banking toward liquidity stress as reserve levels hit historic lows. This decision raises prospects for potential relief in liquidity pressures, impacting global financial markets, including the cryptocurrency sector, through anticipated changes in reserve management strategies. Fed Halts QT Amidst Liquidity Concerns The Federal Reserve Board made the official decision to conclude its quantitative tightening (QT) effective December 1, 2025. This decision, confirmed by the Federal Open Market Committee, aims to address evolving signs of liquidity stress in financial systems. Reserve balances have dropped significantly since March 2025. Ending QT signals a shift towards managing balance sheet sizes to ensure reserve levels are sufficiently ample. By concluding the reduction of all securities holdings, the Fed aims to maintain economic stability and reduce stress indicators, particularly among banking institutions. “The Committee decided to conclude the reduction of its aggregate securities holdings on December 1,” said Jerome Powell, Chair of the Federal Open Market Committee. Crypto Markets Brace for Increased USD Liquidity Did you know? The Federal Reserve’s QT began in 2022, aiming to reduce excessive liquidity. Its first vertical, QT1, ended in 2019 after stress in funding markets, resulting in broader impacts across traditional and crypto asset markets. According to CoinMarketCap data, Bitcoin (BTC) is trading at $90,499.01, with a market cap of formatNumber(1806329115525, 2) and 24-hour trading volume of formatNumber(57177106298, 2), down 1.49% over 24 hours. BTC’s dominance stands at 58.58% amid broader market trends. Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 09:01 UTC on December 9, 2025. Source: CoinMarketCap Insights from Coincu’s research team… The post Federal Reserve Ends Balance Sheet Reduction Amid Liquidity Concerns appeared on BitcoinEthereumNews.com. Key Points: Federal Reserve ends QT, liquidity stress acknowledged, crypto market implications. About $400 billion annual balance sheet growth expected. Potential easing of USD liquidity impacts crypto risk sentiment positively. The Federal Reserve concluded its balance sheet reduction on December 1, signaling a shift in U.S. banking toward liquidity stress as reserve levels hit historic lows. This decision raises prospects for potential relief in liquidity pressures, impacting global financial markets, including the cryptocurrency sector, through anticipated changes in reserve management strategies. Fed Halts QT Amidst Liquidity Concerns The Federal Reserve Board made the official decision to conclude its quantitative tightening (QT) effective December 1, 2025. This decision, confirmed by the Federal Open Market Committee, aims to address evolving signs of liquidity stress in financial systems. Reserve balances have dropped significantly since March 2025. Ending QT signals a shift towards managing balance sheet sizes to ensure reserve levels are sufficiently ample. By concluding the reduction of all securities holdings, the Fed aims to maintain economic stability and reduce stress indicators, particularly among banking institutions. “The Committee decided to conclude the reduction of its aggregate securities holdings on December 1,” said Jerome Powell, Chair of the Federal Open Market Committee. Crypto Markets Brace for Increased USD Liquidity Did you know? The Federal Reserve’s QT began in 2022, aiming to reduce excessive liquidity. Its first vertical, QT1, ended in 2019 after stress in funding markets, resulting in broader impacts across traditional and crypto asset markets. According to CoinMarketCap data, Bitcoin (BTC) is trading at $90,499.01, with a market cap of formatNumber(1806329115525, 2) and 24-hour trading volume of formatNumber(57177106298, 2), down 1.49% over 24 hours. BTC’s dominance stands at 58.58% amid broader market trends. Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 09:01 UTC on December 9, 2025. Source: CoinMarketCap Insights from Coincu’s research team…