Is the Big Crypto Wave Coming? Expert Predictions About the Fed’s Liquidity Policy

Jakarta, Pintu News – The crypto market may be in for a big change with indications that the Federal Reserve (Fed) will change its liquidity policy. After 18 months of tightening, there is a possibility that the Fed will stop its quantitative easing (QT) policy and switch to quantitative easing (QE) quietly.

Fed Policy Changes and Their Impact on the Crypto Market

Market expert, VirtualBacon, emphasized that the Fed’s policy change towards liquidity will be the most significant event for the crypto industry this year, even more important than the Bitcoin (BTC) cut or exchange-traded fund (ETF) approval.

In 2019, when the Fed stopped QT, there was a price surge in altcoins. Conversely, in 2022, when the Fed started QT, altcoin prices peaked. Now, with the expected end of QT in 2025, VirtualBacon predicts a similar spike for altcoins. The correlation between the Fed’s increase in liquidity and the rise in altcoin prices is clear. The main question is when exactly QT will end.

Also Read: Top 3 Crypto’s that are Trending and Stealing Investors’ Attention by the End of 2025!

Indications from CME FedWatch Tool and Major Financial Institutions’ Predictions

The CME FedWatch tool shows a high probability of a rate cut. Major financial institutions such as Goldman Sachs, Bank of America, and Evercore have made predictions that the Fed may end QT soon. Goldman Sachs stated that the October meeting is the base case for the end of QT, while Bank of America expects QT to end by the end of this month.

While the Fed may not explicitly call the shift QE, the crucial moment will come when they remove the language regarding “balance sheet size reduction”. This is similar to the repo crisis of 2019, when banks faced instant cash shortages, prompting the Fed to inject $75 billion into the financial system.

M2 Money Supply and Bitcoin’s Projected Surge

Despite the current market uncertainty, VirtualBacon asserts that Bitcoin (BTC) has not yet reached its peak. Of the 30 historical indicators that usually signal the peak of a bull market, none are active yet, with data showing there is still room for growth.

M2’s global money supply continues to increase, which historically precedes Bitcoin’s (BTC) price by about 10 to 12 weeks. Since the beginning of the month, this money supply has increased, signaling that the next upside move for Bitcoin (BTC) is already on its way, albeit lagging behind the liquidity curve. In addition, VirtualBacon predicts that once the Fed moves on, a new season of altcoins will probably begin.

Conclusion

By various indications from expert tools and analysis, the crypto market seems to be on the verge of a major change triggered by Fed policy. Investors and market watchers should pay attention to these signs to capitalize on the potential price spikes that may occur along with increased liquidity.

Also Read: Bitcoin (BTC) Breaks $115,000, Fear & Greed Index is Neutral!

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• NewsBTC. Is a Crypto Melt-Up Coming? Top Expert Forecasts Liquidity Surge with Fed’s QT Shift. Accessed on October 30, 2025