BTC is back above 90,000 again!

This rebound came pretty fast—the US stock market surged at the open, short positions got squeezed, and Bitcoin quickly recovered lost ground. But the more crucial signal is: the Federal Reserve has officially hit the pause button on QT.

Let’s talk about QT first. Quantitative tightening, simply put, is when the central bank pulls money out of the system, reducing liquidity in the market, which naturally makes assets more likely to lose value. Now that it’s paused, it means the liquidity drain has stopped, financial pressure has eased significantly, and both the stock and crypto markets can breathe a sigh of relief.

So does the end of QT mean they’re about to open the floodgates?

In theory, quantitative easing (QE) is the opposite of QT—printing money, buying assets, and increasing liquidity. Historically, after QT stops, it often transitions to QE, but the timing depends on the Fed. Is inflation still under control? Is the jobs data holding up? These are all variables.

When will they start easing? Just watch the December 9-10 FOMC meeting—it’s likely to reveal more signals.

That said, the market is always full of surprises. Policy shifts are positive, but don’t forget that volatility in crypto never plays by the rules.