Bitcoin Latest Updates: Fed's End to QT May Spark a Crypto Rally Similar to 2019

Bitcoin Poised for a 2019-Style Rally as Fed Plans to End Quantitative Tightening

The U.S. Federal Reserve has announced it will conclude its two-year quantitative tightening (QT) program on December 1, sparking renewed optimism for a crypto market resurgence reminiscent of the 2019 bull run. As liquidity constraints begin to ease, both analysts and blockchain data indicate that Bitcoin and alternative cryptocurrencies could experience a surge similar to the previous period of monetary expansion, which saw BTC prices triple.

Since late 2022, the Fed’s QT measures have withdrawn $2.55 trillion from financial markets, creating significant challenges for risk assets. By December 2025, Treasury bill issuance had climbed to 21.6% of the total U.S. public debt, introducing vulnerabilities in funding markets. The central bank’s unexpected decision to halt QT aims to stabilize the repo market and address liquidity shortages. This policy shift coincides with a broader economic turnaround, as manufacturing activity (PMI) approaches growth territory—a signal that has historically favored riskier investments.

Bitcoin’s recent dip to $80,000 was largely attributed to liquidity issues rather than any fundamental weakness in the asset itself.

Meanwhile, BlackRock’s iShares Bitcoin Trust ETF (IBIT), the largest spot Bitcoin fund, has seen its investors return to a combined profit of $3.2 billion as BTC prices rebounded to $90,000, according to blockchain analytics platform Arkham. This marks a pivotal moment, with ETF inflows resuming after a period of outflows. Geoff Kendrick of Standard Chartered highlights that spot Bitcoin ETFs have been the main catalyst for BTC’s momentum in 2025, bridging the gap between institutional and retail investors.

Altcoins Signal Market Reset

Alternative cryptocurrencies are also showing signs of recovery. Chainlink (LINK) increased its reserves by 89,079 tokens this week, bringing its total to 973,752. Its Bitcoin trading pair has returned to levels not seen since September 2019. Cardano (ADA) and XRP are also trading near their 2019 lows, with risk metrics suggesting the end of the bear market. Notably, XRP has benefited from the resolution of its SEC lawsuit, allowing it to take advantage of the improving macro environment without legal uncertainties, as reported by CoinEdition.

Technical and Regulatory Factors Support Bullish Outlook

Technical analysis further bolsters the positive outlook. Bitcoin’s weekly RSI and 3-week ROC have reached oversold conditions last observed in 2022—historically a precursor to strong rebounds. The Bitcoin-to-gold ratio has also hit levels that typically signal the start of long-term gains. These technical signals, combined with the Fed’s policy shift, indicate that the period of tight liquidity may be drawing to a close.

On the regulatory front, the SEC’s approval of spot Bitcoin ETFs in January 2024 has paved the way for greater institutional participation. Abu Dhabi’s endorsement of Ripple’s RLUSD stablecoin further demonstrates growing institutional interest. While the U.S. regulatory environment remains fragmented, with ongoing disputes between the SEC and CFTC, the overall trend points toward increasing acceptance of cryptocurrencies as legitimate investment assets.

Looking Ahead: Market Rebalancing on the Horizon

With the Federal Reserve preparing to inject liquidity back into the markets, conditions are aligning for a potential market reset. According to crypto analyst Dan Gambardello, the convergence of favorable macroeconomic factors, on-chain accumulation, and technical indicators closely resembles the setup seen in 2019. Whether this leads to a prolonged bull market will depend on the pace of interest rate cuts and global manufacturing trends, but for now, the crypto market is anticipating a significant shift.