Bitcoin News Today: Fed's QT Reversal Ignites Bitcoin's High-Stakes Liquidity Gamble

The Federal Reserve's decision to end quantitative tightening (QT) has sent ripples through financial markets, with Bitcoin's trajectory drawing particular attention as investors speculate on its potential for a dramatic rebound. The central bank's policy committee announced on October 30, 2025, that it would cease reducing its securities holdings starting December 1, signaling a shift toward stabilizing liquidity after years of draining it from the system. This move, coupled with the approval of Bitcoin spot ETFs in January 2024, has reignited debates about whether the cryptocurrency is poised for another explosive surge, potentially multiplying its price by sevenfold.

The Fed's reversal of QT-a strategy that had allowed $2 trillion in bonds to mature without replacement since 2022-comes at a pivotal moment for Bitcoin. BlackRock's iShares Bitcoin Trust ETF (IBIT), the largest spot Bitcoin fund, recently returned to profitability for holders after Bitcoin's price climbed above $90,348. This recovery, while modest compared to its October peak of $126,080, suggests renewed institutional confidence. The ETF's $3.2 billion unrealized gains, according to blockchain analytics firm Arkham, indicate that key investor groups may be stabilizing after weeks of turbulence. Meanwhile, BlackRock's dominance in ETF inflows -recording $21 million in net inflows over two days-underscores its role as a bellwether for market sentiment.

However, Bitcoin's path to a "7x" surge faces headwinds, including political and macroeconomic uncertainties. Nobel laureate Paul Krugman has argued that Bitcoin's price has become inextricably linked to Donald Trump's political fortunes, with the cryptocurrency's recent dip attributed to the 's waning influence. Krugman, a long-time Bitcoin skeptic, contends that the asset lacks intrinsic value, functioning more like a speculative tech stock than a viable medium of exchange. Yet, the Fed's liquidity injection could mitigate some of these risks by easing broader market pressures, particularly as interest rate cut expectations rise ahead of the December 10 meeting.

The crypto sector's infrastructure developments also play a role in shaping Bitcoin's future. [Astra Bitcoin's recent launch of a "Trifecta Value Ecosystem"] https://markets.businessinsider.com/news/stocks/astra-bitcoin-defines-new-asset-class-the-first-sovereign-grade-ecosystem-anchored-by-gold-real-estate-and-strategic-blockchain-validator-nodes-1035604070 -backed by gold reserves, real estate tokenization, and blockchain validator nodes-signals a shift toward institutional-grade assets. This innovation aligns with the Fed's efforts to stabilize markets, as it offers a hybrid model combining digital and tangible assets. Similarly, Mutuum Finance's progress in security audits and layer-2 expansion highlights growing institutional confidence in DeFi protocols. These developments could attract further capital inflows, particularly as BlackRock and other major players continue to integrate Bitcoin into mainstream portfolios.

Despite these positives, challenges remain. Tether's shutdown of mining operations in Uruguay over energy tariffs and the Trump-linked Alt5 Sigma's leadership turmoil illustrate the sector's volatility. Yet, the Fed's liquidity pivot and the maturation of crypto infrastructure may offset such risks. Nasdaq ISE's push to raise BlackRock IBIT options limits to one million contracts reflects the growing institutionalization of Bitcoin trading, while Binance's bespoke services for ultra-high-net-worth investors signal expanding access to the asset class.

In conclusion, the Fed's end of QT, combined with the approval of spot ETFs and institutional adoption, creates a favorable backdrop for Bitcoin. While political and structural risks persist, the interplay of monetary policy, regulatory clarity, and innovation could position Bitcoin for a significant rebound. Whether it achieves a 7x surge, however, will depend on how these factors evolve in the coming months.