- 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.
