Bitcoin News Today: Fed Ends QT, Altcoins Mirror 2019 Bull Setup

The Federal Reserve's decision to end its Quantitative Tightening (QT) program on December 1 has ignited speculation that Bitcoin and altcoins could enter a new bullish phase, with analysts drawing parallels to the 2019 market environment. The policy shift, which halts the monthly runoff of Treasury securities, marks a transition to a more accommodative monetary stance, potentially easing liquidity constraints that have suppressed risk assets for over two years. This move, coupled with on-chain accumulation patterns, has created market conditions reminiscent of late 2019, a period that preceded a significant altcoin rally.

Bitcoin's recent price action has reinforced optimism, with the asset holding key support levels around $90,000 and showing signs of consolidation ahead of a potential breakout. Traders and analysts highlight the 2025 yearly opening level above $93,000 as a critical resistance threshold. A break above this level could reignite a push toward $100,000, according to Michaël van de Poppe, a crypto analyst and entrepreneur. Meanwhile, futures market data suggests a "leverage washout" is underway, clearing the path for a more sustainable rebound.

The focus on December 1 is amplified by historical patterns. In 2019, the end of QT coincided with a surge in altcoins like Chainlink (LINK), Cardano (ADA), and XRP, which saw multi-digit gains as liquidity conditions improved. Today, LINK/BTC is trading in a range similar to its 2019 pre-liquidity shift levels, while ADA and XRP mirror their 2019 risk-score profiles. Institutional accumulation, such as Chainlink's Reserve adding 89,079 tokens this week, further signals confidence in long-term sustainability. XRP, in particular, has benefited from the resolution of its SEC legal battle, positioning it to outperform Bitcoin without the regulatory overhang that previously constrained its growth according to market analysis.

Bitcoin's on-chain accumulation activity suggests a bullish scenario is unfolding, with long-term holders increasing their positions at a historically significant rate. The falling wedge pattern on the OTHERS/BTC chart is a classic pre-breakout setup, indicating that altcoins could dominate Bitcoin's share of market capitalization once the liquidity environment improves.

Current technical indicators, including a falling wedge pattern on the OTHERS/BTC chart, suggest a similar bullish breakout could materialize once QT concludes.

However, short-term headwinds persist. Japan's regulatory tightening, including mandatory liability reserves for crypto exchanges, and U.S. funding market strains have created a "double squeeze" on liquidity, pressuring equities, forex, and crypto in the near term. Yet, these challenges may heighten the likelihood of a Fed response to support risk assets in early 2026.

For Bitcoin, the immediate outlook remains cautiously optimistic. The asset's spot taker cumulative volume delta (CVD) has shifted from negative to neutral, a sign of improving market structure. If Bitcoin retests $88,000 and holds, it could reinforce the case for a sustained rally. Meanwhile, altcoins are poised to benefit from the broader liquidity thaw, with XRP's technical base and LINK's institutional accumulation suggesting strong upside potential.

As the December 1 deadline approaches, market participants will scrutinize Federal Reserve Chair Jerome Powell's remarks for clarity on the central bank's stance. A definitive pivot toward accommodative policy could catalyze a multi-year bull market for crypto, echoing the transformative impact of the 2019 liquidity reversal.

Analysts are also eyeing the impact of QT on risk-on assets. With Bitcoin stabilizing above $90,000 and altcoins showing improved fundamentals, the market is in a position to test historical resistance levels.