Bitcoin News Today: Fed's Stealth Cash Shift Pits Bitcoin Against 2019 Reckoning

Bitcoin Faces Liquidity Squeeze as Fed Ends QT and Treasury Locks Cash

The Federal Reserve's decision to end quantitative tightening (QT) and reinvest maturing debt into short-term Treasury bills has reignited debates about Bitcoin's liquidity and price trajectory. With the central bank confirming the shift on October 30, 2025, Bitcoin (BTC) dropped 3.67% to $107,925, sparking fears of a repeat of the 2019 market crash, when BTC fell 35% following a similar policy move, according to a Cointelegraph report on the Fed ending QT. Analysts are divided: some warn of a bearish correction, while others see a path to $180,000 if liquidity injections mirror past quantitative easing (QE) cycles.

The Fed's new strategy involves halting the runoff of its bond holdings and redirecting proceeds into T-bills, effectively expanding the money supply without explicitly labeling it as QE, as Cointelegraph reported. This "stealth" liquidity boost, however, may not immediately benefit risk assets like Bitcoin, which relies heavily on direct cash inflows. "Ending QT alone isn't enough to revive crypto," said Ted Pillows, a prominent market analyst, who highlighted that altcoins similarly collapsed by 42% in 2019 before rebounding during the 2020 QE-driven rally. He warned that without a fresh round of QE or Treasury general account (TGA) liquidity, crypto markets could remain under pressure.

Meanwhile, corporate Bitcoin holdings are growing despite the volatility. Strategy Inc., the largest corporate BTC treasury, reported $2.8 billion in Q3 2025 net income, driven by gains on its 640,808-bitcoin portfolio, Beincrypto reported. The company reaffirmed its $34 billion operating income and $20 billion Bitcoin gains guidance for 2025, betting on sustained price appreciation. However, S&P Global Ratings downgraded Strategy to "junk" status (B-). The agency warned that if Bitcoin prices drop while debt matures, the firm may be forced to sell assets at a discount.

Other firms are also adopting Bitcoin treasury models. Jiuzi Holdings recently partnered with SOLV to allocate $1 billion into Bitcoin staking and yield products, positioning itself as a compliant gateway for institutional capital, as Morningstar reported. Conversely, Nakamoto Holdings, a Bitcoin-focused firm, faced a stock collapse exceeding 98% after a private investment in public equity (PIPE) deal triggered a sell-off, as Markets reported. CEO David Bailey is now integrating his media and conference ventures into the company to stabilize its cash flow.

The Fed's pivot and corporate Bitcoin strategies highlight a broader shift in liquidity dynamics. While the end of QT could eventually benefit BTC through increased money supply, immediate risks persist. Technical indicators, such as a pending bearish MACD crossover on Bitcoin's three-week chart, suggest further downside before any recovery, Cointelegraph noted. Investors are now watching for signals of QE or TGA releases—events that historically catalyzed crypto rallies.