Bitcoin reacted as the Federal Reserve has officially ended its long-running Quantitative Tightening (QT) program, halting the gradual reduction of its $6.6 trillion balance sheet. To mark the shift, the US Fed injected $13.5 billion in fresh liquidity, signaling a significant change in monetary policy.
Fed Ends QT, Injects $13.5B Into the US Market
A recent report by financial market tracker Barchart shows that the US Fed has injected over $13.5 billion into the US banking system to mark the end of its QT exercise. Barchart revealed this information in an X post, highlighting that the transaction happened on December 1, 2025. The account described this move as the second-largest liquidity injection since the COVID era.
Meanwhile, the QT program, which began in 2022, removed trillions of dollars from the financial system, putting pressure on borrowing costs and risk assets, such as stocks and cryptocurrencies. By stopping QT and adding liquidity, the Fed is signaling a more “data-dependent” approach, reacting to economic conditions rather than maintaining a strict tightening path.
However, this doesn’t mean the Fed is launching another full-scale stimulus. Instead, it’s a neutral pivot that gives the markets a chance to stabilize and potentially rebound. For investors in assets sensitive to liquidity, this development could provide a meaningful tailwind.
Bitcoin and MSTR Stocks Respond
The financial market reacted positively to the recent liquidity injection as Bitcoin, the largest cryptocurrency, surged to a high of $87,000, thriving in the renewed liquidity environment. Saylor’s Strategy (MSTR), one of the largest Bitcoin-holding corporations, also saw a spike in its stock, with MSTR recording its year-high trading volume of $42.9 million.
Meanwhile, the end of QT and the return of liquidity remove a key headwind for markets. Over the past three years, tight liquidity has weighed on equities, bonds, and crypto, keeping investors cautious. Thus, with money flowing back, analysts see potential support for risk-on assets, including growth in stocks and cryptocurrencies.
One such analyst is Fundstrat’s CIO, Thomas Lee, who stated in an interview that the US Fed’s decision to halt the QT program is a turning point for the crypto market. He highlighted that the last time a QT exercise ended in 2019, the market rallied 17% in 3 weeks. Thus, if history repeats, the market could be gearing up for another rally.
Evans Kelvin
