NextFin news, The Federal Reserve, under the administration of President Donald Trump, is scheduled to end its quantitative tightening (QT) program on December 1, 2025. This critical monetary policy adjustment marks the cessation of liquidity withdrawal efforts aimed at curbing inflation, which has persisted above the Fed's 2% target for several years. The decision to halt QT arises amid mixed economic signals from the US market and growing concerns about labor market risks, despite inflationary pressures.
Quantitative tightening is essentially the process of the Fed reducing its balance sheet by selling securities or letting them mature without reinvestment, thus extracting liquidity from the financial system. Ending QT effectively means the Fed will stop draining liquidity, allowing more capital to circulate in the market ecosystem. According to a comprehensive report by Crypto Reporter dated November 9, 2025, this action is set to release a significant monetary flood into financial assets, creating fertile ground for investment demand, particularly in the cryptocurrency sector.
Market analysts are highlighting the emergence of attractive buying opportunities within the crypto space, fueled by expected inflows of liquidity and a shift in investor sentiment. For example, Little Pepe (LILPEPE), a meme coin leveraging Ethereum Layer-2 technology with zero transaction fees and staking rewards up to 782%, has amassed over $27.3 million in presale funds. Its rapid community growth exceeding 40,000 active Telegram members underscores broad retail and institutional interest.
Other promising tokens include Ethena (ENA), a DeFi-centered project with a market capitalization of $2.41 billion and substantial institutional backing, having raised $280 million in pre-launch terminal finance deposits. The layer-2 scalability solution Mantle (MNT), trading at $1.25, has gained attention for superior modularity and low latency, positioning itself as a high-efficiency blockchain alternative amidst growing scalability demands.
Notably, Pepe (PEPE), an established meme coin with a $2.8 billion market cap, continues to attract traders aiming for short-term gains amid volatility. Meanwhile, Virtuals Protocol (VIRTUAL) at $1.86 market cap $1.22 billion, is pioneering AI integration in Web3, reflecting the crypto sector's increasing focus on cutting-edge innovation and interoperability.
These developments unfold alongside a broader market signal: Bitcoin's dominance has declined from approximately 65% in mid-2025 to 59.77% in early November. This declining dominance is traditionally viewed as an indicator of altcoins gaining traction and investment rotation towards diversified crypto assets. Analysts from Coin Edition and Bitget have noted this trend portends an impending altcoin season, bolstered by Fed policy shifts and increased liquidity conditions.
The upcoming end of QT corresponds with other macro factors, including the anticipated reopening of the U.S. federal government, which would unlock renewed government spending and potentially channel fresh capital into risk assets, including cryptocurrencies. Major Asian crypto markets such as South Korea and Japan are also reporting marked increases in altcoin trading volumes, signaling global investor appetite aligning with monetary easing in the U.S.
From a financial analyst's perspective, the cessation of quantitative tightening will logically reduce the upward pressure on interest rates and may eventually lead to a phased series of rate cuts in 2026, especially given the political context of the Trump administration’s influence over monetary policy direction post-June 2025 when Jerome Powell’s term ends. This anticipated policy loosening supports higher risk asset valuations due to cheaper capital and increased market liquidity.
Liquidity injections typically reduce borrowing costs and incentivize speculative investments, both critical for cryptocurrencies that have historically thrived in low-rate environments. Staking protocols with attractive yields, like Little Pepe’s 782%, become highly appealing as investors seek returns superior to traditional fixed income.
Institutional engagement, evidenced by significant pre-launch deposits into projects such as Ethena, also suggests a maturation of the crypto market structure. This trend should enhance market stability and foster long-term investment rather than purely speculative spikes, potentially reducing prior volatility and improving market depth.
However, despite bullish signals, caution remains warranted. The crypto markets inherently carry high volatility, regulatory risk, and liquidity profile uncertainties. Investors must carefully analyze individual project fundamentals and broader macroeconomic factors, including inflation persistence and geopolitical uncertainties, which could impact policy trajectories.
Looking forward, barring unforeseen shocks, the end of QT is poised to usher in a new phase of crypto-market expansion characterized by multiple altcoins gaining momentum alongside sustained interest in scalable layer-2 solutions and AI-integrated protocols. Price action data and trading volumes from November 2025 already reflect this trend with increased buying pressure on targeted tokens.
In conclusion, the Federal Reserve’s move to stop quantitative tightening in December 2025, against the backdrop of evolving U.S. fiscal policy and global market dynamics, is a pivotal catalyst for cryptocurrency investment opportunities. Tokens employing advanced blockchain technology, offering robust utility and community engagement, stand as favorable picks. Market participants and institutional investors should closely monitor liquidity dynamics, Bitcoin dominance shifts, and regulatory developments to position themselves optimally for the anticipated altcoin season and broader market recovery.
This analysis draws from the authoritative report by Crypto Reporter on November 9, 2025, combined with corroborating insights from Coin Edition and Bitget, providing a comprehensive view of the crypto market’s response to macroeconomic monetary policy shifts under President Donald Trump’s current administration.
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