Bitcoin News Today: Fed's QT Exit Could Trigger 2019-Style Crypto Surge

Bitcoin Eyes 2019 Replay as Fed Prepares to End QT on December 1

The U.S. Federal Reserve's decision to end its two-year quantitative tightening (QT) program on December 1 has reignited hopes of a crypto market rebound reminiscent of the 2019 bull run. With liquidity constraints easing, analysts and on-chain data suggest that Bitcoin and altcoins could mirror the momentum seen during the previous liquidity reversal, which preceded a 300% rally in BTC prices.

The Fed's QT, which drained $2.55 trillion from money markets since late 2022, has been a key headwind for risk assets. By December 2025, Treasury bill issuance had surged to 21.6% of total public debt, creating structural fragility in funding markets. The central bank's abrupt halt to QT-announced earlier than expected-aims to stabilize repo markets and address liquidity shortages. This shift aligns with a broader macroeconomic pivot, as manufacturing activity (PMI) approaches expansionary levels, historically signaling a green light for risk-on assets.

Bitcoin's recent pullback to $80,000 was largely attributed to liquidity pressures rather than fundamental weakness in the crypto asset itself. BlackRock's iShares Bitcoin Trust ETF (IBIT), the largest spot BTC fund, saw holders return to a cumulative profit of $3.2 billion as prices reclaimed $90,000, according to blockchain analytics firm Arkham. This marks a critical inflection point, with ETF inflows resuming after weeks of outflows. Standard Chartered's Geoff Kendrick notes that spot Bitcoin ETFs have been the primary driver of BTC's momentum in 2025, underscoring their role in bridging institutional and retail capital.

Altcoins are also showing signs of a structural reset. Chainlink (LINK) has added 89,079 tokens to its reserve this week, bringing total holdings to 973,752, while its BTC pair sits at levels last seen in September 2019. Cardano (ADA) and XRP are trading in similar zones to their 2019 lows, with risk scores indicating end-of-bear territory. XRP, in particular, benefits from resolved SEC litigation, allowing it to capitalize on the macro shift without legal overhang as reported by CoinEdition.

Technical indicators reinforce the bullish case. Bitcoin's weekly RSI and 3W ROC have hit oversold levels not seen since 2022, a pattern historically followed by sharp rebounds. The Bitcoin-to-gold ratio, another key metric, has also reached levels that typically precede long-term gains. These signals, combined with the Fed's pivot, suggest a low-liquidity environment may be nearing its end.

Regulatory developments further support the narrative. The SEC's approval of spot Bitcoin ETFs in January 2024 has normalized institutional exposure, while Abu Dhabi's endorsement of Ripple's RLUSD stablecoin highlights growing institutional adoption. Meanwhile, the U.S. regulatory landscape remains fragmented, with the SEC and CFTC continuing to clash over jurisdiction, but the broader trend points to increased legitimacy for crypto as a tradable asset class.

With the Fed's liquidity tap about to turn back on, the stage is set for a market rebalancing. As Dan Gambardello, a prominent crypto analyst, notes, the alignment of macro conditions, on-chain accumulation, and technical indicators mirrors the 2019 setup. Whether this translates to a sustained bull market will depend on the pace of rate cuts and global PMI trends, but for now, the crypto market is pricing in a significant pivot.