Fed and FOMC signals a return in liquidity flow by buying T-bills
This serves as a bullish sign for crypto and altcoins.
Some expect altcoins to see a broader pump soon.
The Federal Reserve Board just concluded their latest FOMC meeting, announcing what could be seen as bullish news for the crypto market. In detail, the meeting confirmed a 25 bps rate cut and the announcement of buying T-bills. Thus, the Fed FOMC meeting signals a return in liquidity flow, a surefire bullish sign for crypto and altcoins to surge in price and hit new ATH prices in the coming months
Fed FOMC Meeting Signals a Return in Liquidity Flow
Most reputed crypto analysts had already predicted that the Fed would announce a 25 bps rate cut, which would already be priced in. As we can see from the post below, this reputed crypto and financial expert states that the rate cut being priced in means the community can expect Bitcoin to reverse the current short-term bullish trend in the coming days or weeks. He also reminds the community that the Fed is extremely late to cut interest rates.
This reveals that their plan is to crash the markets and use that crash as an argument to ease the economy. None of the upcoming FOMCs interest rate decisions will affect what is happening in the mid-term, but will affect short-term price action. On the mid-term, both Bitcoin and the stock market will bleed. In the short-term, fake pumps will likely trap bulls. All in all, the post says to expect volatility on the shortest timeframes.
Bullish Sign for Crypto and Altcoins
Meanwhile, another post highlights another announcement that was made after the FOMC meeting, and not the 25 bps rate cut. According to this post, today’s FOMC meeting changed everything, with its announcement of the Fed’s intention to start buying T-bills from 12th December. For now, it’ll be $40 billion/month, but Powell said that T-bill buying will remain elevated for a few more months
On 1st December, the Fed ended QT, and now the Fed has started to provide liquidity. Along with that, Powell also said that US economic growth is expected to rise in 2026. This means ISM will probably go over 50 next year, which is one of the best Altseason signals. Powell also mentioned that the rate hike is off the table, which means either a rate cut or a pause could happen
Additionally, Powell also talked about rising inflation, whilst stating that the labor market is very weak. Also, Powell hinted that the interest rate is now in a neutral zone, which means there won’t be more rate cuts anytime soon. Along with that, the Fed liquidity announcement was not QE as it will be buying short-duration bonds. Overall, this meeting seemed a bit hawkish due to the rate cut pause and no QE.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Ethereum Returns to $2,300: Whales Accumulate 540,000 ETH, Exchange Inflows Drop to 10-Month Low
Ethereum's price rebounded above $2,300 on March 18, primarily driven by whale purchases and net exchange outflows. On-chain data shows investors have reduced their selling pressure, with supply tightening. Technical indicators reveal short-term resistance at $2,380 to $2,400, with support near $2,320. The futures market is also displaying positive signals.
GateNews10m ago
XRP Ledger Activity Surges as Price Holds Near Key Resistance
Key Insights
XRP Ledger processed over 2.5 million transactions in 24 hours, reflecting rising network engagement while the asset price remained stable near resistance.
XRP price holds near $1.41 while forming higher lows, indicating buyers continue supporting the asset despite repeated resis
CryptoFrontNews15m ago
Whale Frenzy: $2 Billion Bitcoin Purchase as Market Watches Powell Speech for Potential BTC Breakthrough Above $75,000
Bitcoin price has fallen back to $74,000, with the market paying close attention to Fed Chair Powell's speech. Ongoing whale buying and ETF inflows demonstrate long-term demand, but short-term selling pressure should be watched carefully. Market sentiment is improving, and volatility could increase.
GateNews19m ago
On-chain analyst: Bitcoin market overheating phenomenon eliminated, but seller pressure remains unrelieved
On March 18, on-chain data analyst Axel released a report indicating that the Bitcoin market has moved out of an overheated state, but selling pressure still exists and no reversal signals have appeared. The MVRV Z-Score indicator has dropped to 0.674, suggesting that the bubble has been deflated; meanwhile, the aSOPR indicator remains below 1.0, indicating that the market is still in a loss-selling phase, with a rebound facing the risk of selling pressure.
GateNews22m ago
Ethereum Surges 25% in March, Institutional Buying and ETF Issuance Drive ETH Price Gains
Analysts point out that Ethereum has recently outperformed the S&P 500 index, though Federal Reserve policy decisions may impact its upward momentum. Despite prices remaining below last year's highs, institutional investors are actively increasing positions, demonstrating strengthened confidence in Ethereum, while the launch of new ETFs also reflects sustained market interest in digital assets and decentralized finance.
GateNews28m ago
Bitcoin Faces Obstacle at $75,000: Federal Reserve Meeting and Middle East Situation May Become Key Turning Points
Bitcoin's upward momentum weakened after touching $75,000, with market concerns about a near-term peak. Despite continued institutional accumulation pushing total open interest to $58 billion, prices face pressure from macro uncertainty. Bitcoin ETF inflows exceeding $1.5 billion support the price. Market focus remains on the Federal Reserve meeting and geopolitical situation, which may impact near-term trends.
GateNews45m ago
