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Fed's $40 Billion Treasury Bill Purchases: Why It's Not QE and Unlikely to Boost Crypto (BTC, ETH)
17.12.2025 17:24
The Federal Reserve's recent announcement of $40 billion in Treasury bill purchases is sparking debate, but analysts caution against labeling it as Quantitative Easing (QE). Unlike traditional QE, this program is designed to maintain ample bank reserves and manage liquidity, not to directly stimulate the economy or markets. Experts suggest this technical adjustment is unlikely to provide the catalyst needed to pull Bitcoin (BTC), Ethereum (ETH), and the broader crypto market out of its current slump. While the Fed's balance sheet expands, the fundamental drivers for crypto recovery remain tied to macroeconomic sentiment, regulatory clarity, and institutional adoption, not this specific liquidity operation. Market observers recommend watching for genuine shifts in monetary policy rather than short-term balance sheet movements for signs of a sustained crypto rally.