Bitcoin Pumps 7% as Fed Ends QT: All-Time High Coming Soon?

The U.S. Federal Reserve has officially ended its Quantitative Tightening (QT) program. This pivotal move could reshape the trajectory of assets like Bitcoin. 

Notably, the decision signals the start of a new liquidity-expansion phase, a shift that has historically fueled stronger rallies in equities and cryptocurrencies.

As part of this transition, the Fed added more than $13 billion to the banking system using overnight repo deals, marking the second-biggest liquidity move by the U.S. apex bank since the 2019 coronavirus pandemic.

BREAKING: The Federal Reserve has officially ended quantitative tightening (QT). pic.twitter.com/EC9wQLeaxo

— The Kobeissi Letter (@KobeissiLetter) December 2, 2025

Potential Impact on Bitcoin

As the news spread across the financial community, several prominent crypto figures, including Binance co-founder Changpeng Zhao (CZ), have weighed in on the implications for the crypto market.

Industry leaders suggest that the Fed’s decision typically translates into greater market participation, easier access to capital, and stronger upside momentum for Bitcoin. Analysts note that conditions are beginning to resemble past cycles in which expanded liquidity preceded major crypto rallies.

Imminent Rally?

BitMine Chairman Tom Lee told CNBC’s Squawk Box that Bitcoin jumped nearly 20% in the weeks following the Fed’s previous end to Quantitative Tightening. He said BTC could rally similarly this time, potentially gaining strength before the new year.

Bull Theory also weighed in on the Fed’s latest decision, stressing that the recent move resembles the pattern observed in late 2019, when a series of repo spikes preceded tighter liquidity long before the pandemic.

If repo spikes continue, according to Bull Theory, the Fed may be pushed toward some form of monetary easing by early 2026.

While this would not mirror the massive Quantitative Easing launched in 2020, it would still represent meaningful liquidity support for financial markets.

Amid anticipation for a rally, market analyst Sykodelic urged crypto enthusiasts to stay calm following the Fed’s decision. While the move is bullish for Bitcoin, he cautioned against expecting an immediate surge.

Bitcoin Could Plunge Heavily in Mid-December

Amid growing anticipation of a potential Bitcoin price surge, Into The CryptoVerse founder Benjamin Cowen urged investors to remain cautious.

He warned that the market could see the Federal Reserve cut rates while the Bank of Japan raises interest rates later this month. Cowen noted that a similar setup occurred in July 2024, triggering sharp volatility in Bitcoin and a heavy sell-off, with the market bottoming roughly one week later

With similar conditions potentially aligning on December 10—expected Fed rate cuts paired with a possible BOJ hike—he cautioned that Bitcoin may face comparable pressure. If the pattern repeats, the market could experience another short-term capitulation followed by a rebound, setting up a potential Bitcoin bottom in mid-December.