The Federal Reserve cut interest rates by 25 basis points as expected this week. To be honest, this move itself isn’t worth much deep analysis — the market had already priced it in long ago.

But what follows has been overlooked by most people, and that’s what we should pay attention to👇

The Federal Reserve plans to initiate a Treasury reserve management purchase program within the next 30 days. Several key pieces of information need to be clear:

• Initial scale: $40 billion
• Launch date: December 12
• Reserve growth may continue until April 2026

It’s not called quantitative easing, but the actual effect is similar to QE.

As soon as the Fed begins buying Treasuries, the banking system’s reserves will increase, and liquidity within the system can improve. In other words, this is a low-key, gradual “hidden quantitative easing.”

The key is a shift in direction.

Over the past 24 months, the Fed has been doing the same thing: balance sheet reduction and liquidity withdrawal. Now, the situation has reversed — the balance sheet has shifted from shrinking to phased net injections. It’s not just about numbers; it’s a matter of trend.

There’s a logic we’ve been emphasizing all along, and it’s simple:

👉 Liquidity > Interest Rates > Fundamentals

Looking at history, almost every time bank reserves start to rise and the balance sheet stabilizes, risk assets tend to lead the response.

Meanwhile, the interest rate markets are also following this signal.

Fed funds futures are already pricing in:
• Two more rate cuts before 2026
• Totaling about 50 basis points

What does this indicate?

It suggests that the policy environment might be more moderate than the current market consensus.

This is especially important for the crypto market.

BTC isn’t priced based on cash flow; one of its core driving forces is the tightness of dollar liquidity. Once the Fed shifts from withdrawal to injection — even if it’s “hidden” — the market will start to price this in ahead of time. For example, assets like BTC, ETH, and ENA could perform well.

Particularly considering a few background factors:

• The halving has already occurred
• Institutional participation is still rising
• Market sentiment is still in recovery

So the conclusion is quite straightforward:

This isn’t the massive quantitative easing seen in 2020, but it’s very likely — an underestimated liquidity turning point.

And markets usually start to move before most people have even reacted.