Bitcoin News Today: Bitcoin Rises Toward $90K as Fed's RMPs Spark 'Stealth QE' Debate

Bitcoin's price trajectory remains tightly linked to the U.S. Federal Reserve's policy moves, as highlighted by BTSE's COO Jeff Mei. If the Fed holds interest rates steady in Q1 2026, Bitcoin could face a significant correction, dipping to $70,000, according to Mei. The scenario reflects growing sensitivity of risk assets like crypto to monetary policy decisions.

In the near term, Bitcoin has shown some resilience, rising toward the $90,000 level as of December 25. Altcoins like Ethereum and Ripple have also seen rebounds above key support levels. However, the broader market remains under pressure, with Bitcoin and Ethereum ETFs recording outflows as institutional investors scale back exposure ahead of the Christmas holiday.

Recent Fed action has also sparked debate, with the central bank ending quantitative tightening (QT) and launching Reserve Management Purchases (RMPs). These measures, buying $40 billion in short-term Treasuries monthly, have been dubbed "stealth quantitative easing" by some analysts. If RMPs continue, Bitcoin could rise to $92,000–$98,000, according to Mei.

How Markets Reacted

Bitcoin's ETFs have experienced a string of outflows, with $175.3 million leaving U.S. Bitcoin spot ETFs on December 24 alone. BlackRock's IBIT and Grayscale's GBTC led the outflows, with ETHE suffering the largest outflow among Ethereum ETFs. These outflows have not been uniform; while Bitcoin and Ethereum ETFs lost ground, XRP ETFs bucked the trend with continued inflows. XRP ETFs saw $13 million in inflows on the same day, reaching $1.07 billion in cumulative inflows.

Bitcoin's price has been volatile, trading above $89,000 but still 30.8% below its all-time high. The 50-day Exponential Moving Average (EMA) at $93,608 represents a key threshold, with a break above this level opening the door for further gains. However, downward-moving EMAs highlight a bearish bias, and a close below $90,000 could trigger a sell-off.

Ethereum's ETFs have fared even worse, with Ethereum ETFs posting $76 million in outflows on December 20. Despite this, Ethereum's price has held above $3,000, supported by Layer 2 scaling upgrades and growing DeFi appeal. A break above the 50-day EMA at $3,195 could confirm the bullish outlook and set the stage for a move toward $3,403.

What Analysts Are Watching

Analysts are closely watching how the Fed's RMPs influence risk asset dynamics. Mei's scenario suggests that continued RMPs could inject liquidity into markets, pushing Bitcoin toward $92,000–$98,000. This would align with broader expectations that a more accommodative Fed could benefit risk assets.

Technical indicators also remain in focus. Bitcoin's RSI is approaching the 50 midline, a potential catalyst for a breakout above $90,000. The MACD indicator also shows positive divergence, suggesting upward momentum. However, traders are advised to remain cautious as the moving averages continue to slope downward, reinforcing the bearish outlook.

The broader market remains sensitive to liquidity shifts, particularly around holidays when trading volumes drop. ETF flows during these periods can exaggerate price movements, as seen in the recent outflows ahead of Christmas. These flows do not necessarily indicate a bearish outlook but reflect defensive positioning in a low-liquidity environment.

What This Means for Investors

Investors need to remain cautious as the market navigates a period of uncertainty. Bitcoin and Ethereum ETFs are seen as proxies for institutional demand, and their outflows highlight a shift in risk appetite. While Bitcoin ETFs have posted $57.41 billion in cumulative net inflows, continued outflows could erode investor confidence and limit price gains toward $100,000.

For Ethereum, the growing DeFi appeal and Layer 2 scaling upgrades offer some optimism. With over $50 billion in ETF inflows and institutional accumulation, the asset is well-positioned to benefit from long-term trends. However, short-term headwinds remain, with Ethereum's price still below key EMAs and a failure to break the 50-day EMA keeping it vulnerable to further declines.

Investors in XRP should also monitor the cross-border remittance token's performance. Despite being below key EMAs, steady ETF inflows suggest ongoing institutional interest. A break above the $2.00 level could signal a broader market shift, but for now, consolidation above $1.90 remains critical.

As the market waits for the Fed's Q1 2026 policy decision, investors are advised to watch both macroeconomic developments and technical indicators. The interplay between central bank policy, market sentiment, and technical levels will likely shape the next phase of Bitcoin's price action.