According to the source, traders should focus on USD liquidity mechanics rather than headlines: when the Treasury General Account rises and the Fed’s ON RRP absorbs cash, bank reserves decline and financial conditions tighten, a backdrop that has historically pressured risk assets including BTC and ETH. Source: Board of Governors of the Federal Reserve System, H.4.1 Factors Affecting Reserve Balances; Federal Reserve Bank of New York, System Open Market Account data. A divided FOMC raises uncertainty about the rate path, which can lift real yields and the dollar—both typically negative for crypto returns via tighter financial conditions. Source: Board of Governors of the Federal Reserve System, FOMC minutes; Federal Reserve Bank of Chicago, National Financial Conditions Index. Even if QT slows or ends, Treasury refunding and TGA rebuild phases can temporarily drain private-sector liquidity and offset easing impulses, sustaining pressure on risk assets. Source: U.S. Department of the Treasury, Quarterly Refunding Announcement; Treasury Borrowing Advisory Committee minutes. Crypto-native liquidity also matters: declines in aggregate stablecoin market value reduce spot buying power and often coincide with weaker crypto spot demand. Source: Federal Reserve, Financial Stability Report (stablecoin section); Coin Metrics, Stablecoin Supply data. For trading, monitor DXY, 10-year TIPS real yield, weekly changes in ON RRP/TGA, and net stablecoin issuance; improvements in these indicators have aligned with stronger crypto performance during prior cycles. Source: ICE U.S. Dollar Index (DXY) methodology; U.S. Treasury Daily/Monthly Statements; Federal Reserve H.4.1; Coin Metrics; IMF Global Financial Stability Note on crypto-equity correlations.

According to @StockMarketNerd, six near-term macro tailwinds are aligning for risk assets—QT ending, rate cuts coming, improving trade news, strong Big Bank credit data, full-employment conditions, and a pro-equity midterm election backdrop, source: @StockMarketNerd on X, Oct 27, 2025. The author frames this as a setup to take advantage of rather than fade, implying supportive momentum for equities and liquidity-sensitive crypto such as BTC and ETH if these conditions persist, source: @StockMarketNerd on X, Oct 27, 2025.

According to Crypto Rover, the Federal Reserve has officially announced a slowdown in Quantitative Tightening (QT) starting from April 1st. This move could potentially lead to increased liquidity in the markets, possibly affecting cryptocurrency prices positively.