Jerome Powell Ends Federal Reserve’s Quantitative Tightening

Jerome Powell, Chair of the Federal Reserve, is scheduled to deliver a speech on December 1, 2025, coinciding with the conclusion of the Fed’s quantitative tightening program.

The end of quantitative tightening could enhance market liquidity, potentially boosting cryptocurrencies like Bitcoin and Ethereum, amid trader anticipation of a December rate cut by the Federal Reserve.

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Jerome Powell’s Announcement

Jerome Powell, Chair of the Federal Reserve, announced the end of the Fed’s quantitative tightening on December 1, 2025. The decision is in alignment with the Federal Open Market Committee’s (FOMC) recent monetary policy updates. As the central figure, Powell indicated that the Fed would stop reducing Treasuries and mortgage-backed securities holdings. This marks a notable policy shift and concludes the quantitative tightening program as part of broader monetary strategies.

Impact on Financial Systems and Cryptocurrencies

The conclusion of QT is expected to improve liquidity across financial systems, impacting digital assets like Bitcoin and Ethereum. Market participants have largely anticipated this move as part of the Fed’s monetary easing expectations. This decision has potential financial impacts, including liquidity boosts for staking and DeFi protocols. Cryptocurrency markets, sensitive to monetary policy shifts, may experience increased volatility and capital inflows due to these changes.

Jerome Powell, Chair, Federal Reserve, “The Federal Open Market Committee remains committed to supporting maximum employment and returning inflation to 2% over the long run.”

Historical Trends and Future Prospects

Historical trends suggest that past QT conclusions correlated with Bitcoin price surges. Market observers predict similar patterns, driven by enhanced liquidity conditions and expectations. Enhanced digital asset inflows could further bolster market momentum. Financial experts anticipate the Fed’s dovish shift could entail further regulatory discussions, potentially supporting prominent tokens like Bitcoin and Ethereum in response to easing financial conditions.