Will the End of Quantitative Tightening Reverse the Crypto Down Trend?

Ben Graham · Dezembro 3

The Federal Reserve’s decision to halt balance-sheet runoff comes as crypto pressure spreads across the market after a sharp weekend sell-off.

As per Reuters’ report, the central bank ended quantitative tightening on December 1. It will now roll over maturing Treasuries and reinvest mortgage-bond payouts into Treasury bills. The goal is to keep reserves “ample” as money markets in the United States show signs of strain.

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Can the Fed’s Policy Shift Stop Crypto Down Momentum?

Officials said the shift should help steady liquidity and keep short-term rates under control. But markets remain cautious.

With crypto down, momentum already in place, investors are watching closely to see if easier conditions can slow the slide.

Under the new plan, the Fed will no longer allow Treasuries to roll off its balance sheet. Mortgage-backed security payouts will also be redirected into short-term government debt. That keeps the size of its holdings largely unchanged.

Chair Jerome Powell said the bank stopped shrinking its balance sheet once reserves moved “somewhat above” the level needed for smooth market functioning. He added that money-market signals showed that the threshold had been reached.

The policy change also came with a 25-basis-point rate cut, bringing the target range to 3.75%-4.00%. Bloomberg reports pointed to October 29 as the turning point, the first time since 2022 the Fed stopped shrinking its Treasury holdings.

Bloomberg also confirmed the end of the runoff, noting stress in money markets as year-end closes in and risks remain high.

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Is Bitcoin Dominance About to Peak as Quantitative Tightening Ends?

Bitcoin last traded near $90,084 after a volatile session. It dipped to about $83,951 and later touched $90,108.

Ether hovered around $2,928, moving between $2,723 and $2,928, showing only a mild bounce.

US stocks opened higher on Tuesday as investors looked ahead to next week’s Fed meeting.

But crypto did not keep up. While Wall Street found its footing early in the session, digital assets stayed under pressure.

Based on the chart shared by Mister Crypto, Bitcoin Dominance (BTC.D) looks close to another possible turning point, right as Quantitative Tightening (QT) is about to end.

The chart compares BTC dominance with the US Federal Reserve’s balance sheet (WALCL) and shows a clear pattern from past cycles.

QT stops on tomorrow.

Last time QT was shut down, it marked the top for Bitcoin Dominance.

If history repeats, this will be very bullish for altcoins! pic.twitter.com/BnHv7u8ZIn

— Mister Crypto (@misterrcrypto) November 30, 2025

BTC.D topped out soon after QT stopped. What followed was a steady fall in dominance, while many altcoins slowly began to recover from deep losses.

Right now, BTC.D is pressing into the same resistance area as before. On the chart, this zone is labeled “BTC.D Top.”

Price action near this level shows the move is losing speed. The trend is flattening, not accelerating.

If the pattern plays out again, Bitcoin could start losing share of the market. That could mark the early stages of an exit from the current crypto down phase for altcoins.

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