Executive Summary

Key insights and market outlook

The Federal Reserve's decision to cut interest rates by 25 basis points to 3.50%-3.75% and potential return to Quantitative Easing (QE) in 2026 is seen as a positive catalyst for risky assets, particularly cryptocurrencies ¹

². The Fed has begun purchasing $40 billion in short-term Treasury Bills monthly, signaling an end to Quantitative Tightening (QT). This monetary easing is expected to boost crypto markets, though the impact depends on the scale and form of QE implementation.

Full Analysis

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Deep Dive Analysis

Federal Reserve's QE Signal Strengthens Crypto Market Outlook for 2026

Monetary Policy Shift

The US Federal Reserve's recent decision to cut interest rates by 25 basis points to 3.50%-3.75% has sent a strong signal to the market about a potential shift in monetary policy ¹

. The central bank has also begun purchasing $40 billion in short-term Treasury Bills monthly, marking a significant change from its previous Quantitative Tightening (QT) stance ².

Impact on Cryptocurrency Markets

The prospect of Quantitative Easing (QE) returning in 2026 is being viewed as a potential catalyst for risky assets, particularly cryptocurrencies. According to Vice President of Indodax Antony Kusuma, the impact on crypto will be positive but depends on the scale and form of the QE implementation ²

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Market Recovery Prospects

The crypto market, which has faced pressure in recent months, is expected to recover gradually if QE is implemented. The Fed's actions indicate a shift towards monetary easing, which could boost investor confidence in risky assets.

References