NextFin news, on November 8, 2025, the President of the Federal Reserve Bank of New York conveyed an expectation that quantitative easing (QE) measures may begin in the near term. This announcement was highlighted in a market-moving commentary shared by a well-known crypto analyst, Crypto Rover, on social media. The statement suggests a potential pivot in U.S. monetary policy under the current administration of President Donald Trump, inaugurated earlier this year, with the Federal Reserve likely to reinstate balance sheet expansions to inject liquidity into the financial system.
The context for this development lies in the broader macroeconomic landscape, where persistent economic uncertainties and subdued inflation pressures have possibly nudged the Fed toward easing again after a cycle of tightening. According to official Federal Reserve communications and the New York Fed’s publications, while no formal FOMC statement has confirmed immediate QE initiation, the signals indicate preparatory steps. If launched, QE is expected to lower Treasury yields via term premium compression and reduce long-term borrowing costs, creating a favorable environment for liquidity-sensitive assets.
Cryptocurrencies Bitcoin and Ethereum, which have historically responded strongly to Fed liquidity injections, are anticipated to benefit significantly. Data from previous QE episodes, such as the crisis response in 2020, saw Bitcoin’s price surge from approximately $5,000 to over $60,000 within a year, illustrating crypto’s sensitivity to monetary easing. Current market conditions show Bitcoin approaching critical technical levels, with a support zone around $95,000 and resistance near $110,000, while Ethereum is increasingly active on-chain with rising transaction volumes and whale accumulation, signaling potential tests of historic highs.
The mechanism underlying this expected price run involves multiple financial channels. QE-induced balance sheet expansions (tracked via the Fed’s H.4.1 report) increase system-wide bank reserves, enhance liquidity, and often drive down the effective risk-free rate. This, coupled with a weakening U.S. dollar (monitored through the DXY index) and declining real yields (derived from Treasury Inflation-Protected Securities), tends to reduce the opportunity cost of holding volatile assets like BTC and ETH. Moreover, derivatives markets such as CME Bitcoin futures reveal narrowing spot-perpetual basis spreads consistent with increased risk-on sentiment.
From a trading and investment standpoint, the anticipated liquidity influx suggests heightened volumes, potentially surpassing prior bull market peaks exceeding $100 billion daily for Bitcoin trading alone. Institutional interest, evidenced by ongoing crypto accumulation by asset managers such as BlackRock and Fidelity, is likely to accelerate. Traders are encouraged to observe technical indicators like BTC's 50-day moving average for breakout confirmation and apply prudent risk controls, including 5-10% stop-loss thresholds, to manage volatility risks common in crypto markets.
Altcoin segments related to decentralized finance (DeFi) and artificial intelligence themes, exemplified by tokens such as Solana and Chainlink, may also experience upward momentum due to spillover from primary crypto bullishness. Cross-asset correlations are anticipated to strengthen, especially between Ethereum and tech-heavy equity indices such as Nasdaq futures, reflecting systemic liquidity-driven rallies.
However, caution remains warranted. Inflationary pressures could prompt the Fed to unexpectedly tighten if QE leads to overheating, reversing risk appetite. Geopolitical tensions and regulatory uncertainties may additionally curtail enthusiasm. Investors should utilize momentum and mean-reversion tools—e.g., Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD)—to time entry and profit-taking decisions prudently. A RSI above 70 for Bitcoin is a typical overbought signal that could precede corrections.
Looking ahead, if this QE phase unfolds as projected, Bitcoin could target levels around $150,000 by mid-2026, extrapolating from historic liquidity-driven cycles and current on-chain growth metrics, including a 15% week-over-week uptick in active Bitcoin addresses reported by Glassnode as of early November. Ethereum may similarly approach or exceed prior all-time peaks, driven by institutional and retail demand synergy.
In sum, the New York Fed President’s indication of imminent QE marks a significant inflection point for crypto markets. The interplay of renewed Fed liquidity injections, macroeconomic conditions, and evolving market structure provides a robust foundation for a bullish trajectory in BTC and ETH prices. Market participants should continuously monitor Federal Reserve publications, liquidity indicators such as overnight reverse repo usage, and crypto derivatives spreads to optimally position themselves in an increasingly dynamic risk asset environment.
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