The Fed stops quantitative tightening and shifts to buying Treasuries. Can the crypto market take a breather?

【Crypto World】Federal Reserve is changing its approach—not reducing the balance sheet anymore, but instead redirecting money that would have gone into mortgage-backed securities straight into government bonds. The goal is clear: to stabilize the scale of government bond holdings. Powell says that the current reserve level is already sufficient to maintain market liquidity, and this adjustment is to “lock in” stability for the system.

The crypto market, however, is feeling uneasy. The market has already been sluggish recently, and investors are closely watching this policy shift—after all, liquidity tightening or loosening directly affects risk assets. The question is: can this “maneuver” by the Fed alleviate the current downturn? The market is still waiting and seeing, but at least one signal has been sent—there won’t be any further proactive liquidity withdrawal in the short term.