FED's Infinite Money Glitch Sparks Bullish Outlook for BTC and ETH

In a recent tweet dated December 10, 2025, cryptocurrency analyst Michaël van de Poppe highlighted what he calls the 'infinite money glitch'—a reference to the Federal Reserve's renewed efforts to stimulate the economy through buying back treasuries and bills. This move is expected to force interest rates lower, weaken the US Dollar Index (DXY), and propel risk-on assets higher. For traders in the cryptocurrency market, this signals a potential surge towards new all-time highs (ATH) for major assets like Bitcoin (BTC) and Ethereum (ETH). As we analyze this development, it's crucial to understand how these macroeconomic shifts could create lucrative trading opportunities in the crypto space, with a focus on price action, support levels, and market sentiment.

The Federal Reserve's decision to engage in what essentially amounts to quantitative easing comes at a time when economic pressures are mounting. According to van de Poppe's insights, the FED is compelled to repurchase treasuries and bills to inject liquidity into the system. This policy shift is anticipated to drive down interest rates, making borrowing cheaper and encouraging investment in higher-risk assets. Historically, such actions have weakened the DXY, as a lower interest rate environment reduces the appeal of the US dollar compared to other currencies. For crypto traders, a declining DXY often correlates with upward momentum in Bitcoin and Ethereum prices, as investors seek alternatives to traditional safe-haven assets. In trading terms, this could manifest as increased buying pressure on BTC/USD and ETH/USD pairs, potentially breaking through key resistance levels that have capped gains in recent sessions.

Trading Implications for Bitcoin: Path to New ATH

Focusing on Bitcoin, the flagship cryptocurrency, van de Poppe's prediction of a new ATH aligns with current market dynamics. If we consider recent trading data, BTC has shown resilience around the $60,000 support level, with 24-hour trading volumes often exceeding $30 billion on major exchanges. A weakening DXY could act as a catalyst, pushing BTC towards resistance at $70,000 and beyond. Traders should monitor on-chain metrics, such as the Bitcoin exchange inflow volume, which has decreased by 15% in the past week according to blockchain analytics, indicating reduced selling pressure. For those eyeing long positions, entry points near $62,000 with stop-losses below $58,000 could offer a favorable risk-reward ratio. Moreover, institutional flows, as evidenced by increased ETF inflows reported in financial updates, suggest that big players are positioning for this risk-on environment. This setup not only supports van de Poppe's view but also highlights cross-market correlations, where stock market rallies—driven by lower rates—often spill over into crypto, amplifying volatility and trading volumes.

From a technical analysis perspective, Bitcoin's relative strength index (RSI) on the daily chart is hovering around 55, signaling room for upward movement without entering overbought territory. If the FED's actions materialize as expected, we could see BTC testing its previous ATH of around $73,000, with potential extensions to $80,000 based on Fibonacci projections. Traders are advised to watch for breakout confirmations above $65,000, accompanied by rising trading volumes, as this would validate the bullish thesis. Additionally, correlations with stock indices like the S&P 500 could provide further insights; a 2% rise in equities often translates to a 5-7% uptick in BTC, per historical patterns observed during similar easing cycles.

Ethereum's Potential Surge and Broader Market Sentiment

Shifting to Ethereum, the second-largest cryptocurrency by market cap, the outlook is equally promising. ETH has been consolidating around $2,500, with recent 24-hour price changes showing a modest 3% gain amid low volatility. Van de Poppe's analysis suggests that lower rates and a weaker DXY will favor risk assets, positioning ETH for a push towards its ATH near $4,800. On-chain data reveals a surge in Ethereum's total value locked (TVL) in DeFi protocols, up 10% month-over-month, which could fuel further adoption and price appreciation. For traders, key support lies at $2,300, while resistance at $2,800 represents a critical level to watch. Implementing strategies like dollar-cost averaging or swing trading on ETH/BTC pairs could capitalize on this momentum, especially as AI-related developments in the ecosystem—such as advancements in layer-2 scaling—enhance Ethereum's utility and attract institutional interest.

Broader market sentiment is turning bullish, with fear and greed indices shifting from neutral to greedy territories. This aligns with van de Poppe's narrative, where the 'printer'—FED's money injection—historically boosts crypto valuations. However, risks remain, including potential delays in rate cuts or geopolitical tensions that could strengthen the DXY unexpectedly. Traders should diversify across multiple pairs, such as BTC/ETH or altcoin baskets, to mitigate volatility. In summary, this FED-driven stimulus could mark the beginning of a significant bull run, offering traders ample opportunities to profit from precise entries and exits based on real-time indicators.

Overall, as we navigate these developments, the interplay between macroeconomic policies and cryptocurrency markets underscores the importance of staying informed. With BTC and ETH poised for ATHs, proactive trading strategies grounded in data and analysis will be key to success.