Bitcoin News Today: Fed Lifts Liquidity Drag, Altcoins Eye 2019-Style Surge

The Federal Reserve's decision to end its Quantitative Tightening (QT) program on December 1, 2025, has ignited speculation about a potential "altseason" in cryptocurrency markets, with analysts drawing parallels to the 2019 bull run that followed a similar policy shift. The move, which halts the two-year effort to shrink the Fed's balance sheet, is seen as a liquidity pivot that could reshape risk asset dynamics, particularly for altcoins. With Bitcoin's dominance currently below 60% and key altcoins like Chainlink (LINK), Cardano (ADA), and XRP resetting to 2019 valuations against Bitcoin, market observers are flagging structural similarities to a prior cycle that preceded a 630% outperformance of altcoins over Bitcoin.

The end of QT removes a key drag on liquidity, which analysts argue has suppressed altcoin activity for years. The Fed's balance sheet, frozen at $6.57 trillion after draining $2.39 trillion since 2022, will no longer shrink, potentially injecting $95 billion monthly into markets. This shift aligns with on-chain signals of institutional accumulation, such as Chainlink's Reserve adding 89,079 tokens this week, bringing its total holdings to 973,752 tokens. The reserve's role in stabilizing the Chainlink Network underscores growing confidence in the project's long-term utility according to market analysis.

Historical context further reinforces optimism. In late 2019, the end of QT coincided with a sharp rebound in altcoins, including LINK and ADA, which surged from $2 and $0.05, respectively, to multi-year highs. Today, LINK/BTC and ADA/BTC pairs mirror those levels, with risk scores at 25 and 20—far below the 50–60 range seen during the prior cycle—suggesting undervaluation according to technical analysis. XRP, meanwhile, has formed a "powerful technical base" near $2.20, benefiting from the resolution of its SEC legal battle and improved macro conditions as noted in market commentary.

Bitcoin's recent stabilization near $87,000 has also spurred a rotation into altcoins, with the OTHERS/BTC chart forming a falling wedge pattern—a classic precursor to a breakout. Analysts project a potential 300% gain for the ratio if the pattern repeats the 2019 cycle. This optimism is tempered by caution, however, as Bitcoin dominance remains elevated and global manufacturing PMI data has yet to cross the 50 expansion threshold.

The macroeconomic backdrop is further bolstered by an 80% probability of a December rate cut, according to the CME FedWatch tool. This dovish pivot, combined with the end of QT, has positioned crypto markets for a liquidity-driven rebound. Projects like Bitcoin Munari, which maintains a fixed 21 million supply model during its presale, and Blazpay, entering a critical presale phase, are attracting investors seeking exposure to structured, low-cost entry points according to market reports.

While the path forward remains uncertain, the confluence of policy shifts and technical indicators has created a compelling case for altcoin outperformance. As one analyst noted, "The macro is lining up. The last time this happened, September 2019... LINK was around $2 (now $13), ADA was around 5 cents (now .40), XRP was around 29 cents (now $2). The same BTC pair levels. Same risk score zones. Different prices" according to market analysis. With the Fed's liquidity pivot and a favorable on-chain environment, the stage is set for a potential altseason, though investors are urged to remain vigilant about regulatory and market volatility risks.