🇺🇸🔥 THE FED CONFIRMS THE TURNAROUND: LIQUIDITY IS RETURNING 🔥🇺🇸
The Federal Reserve has cut interest rates by 25 basis points and announced the end of quantitative tightening (QT) starting in December.
This marks two fundamental changes: cheaper credit and a stop to the draining of liquidity from the system.
Since 2022, QT has withdrawn trillions of dollars from the economy, limiting credit and slowing the growth of risky assets, including cryptocurrencies.
With the end of QT, the central bank will cease to reduce its balance sheet.
Institutions will thus be able to maintain more reserves, easing credit conditions and stabilizing liquidity.
In other words, the contraction cycle is closing: liquidity is beginning to flow again.
Jerome Powell described the decision as an act of “risk management,” explaining that the economy remains strong, inflation is slowing down but remains above target.
There is no certainty about another cut in December, but the signal is clear: the monetary tightening is over.
For the markets, this is equivalent to igniting the spark of a new expansionary cycle.
With more liquidity and banks under less pressure, capital could start to shift back towards high-yield assets – Bitcoin and altcoins leading the way.
After two years of monetary drought, the wind of liquidity could soon return to blow over the crypto markets. 🔥
