Bitcoin Soars Above $90K: Fed’s QT End & Rate Cuts Spark a Crypto Carnival! 💰🎉

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Bitcoin climbs above $90K as the Fed ends QT, liquidity rises, Vanguard opens crypto ETF access, and traders boost rate-cut expectations

 

Ah, Bitcoin, that most elusive of assets, has finally surpassed the mythical $90,000 mark, much to the delight of those who’ve been waiting for a reason to believe in miracles. 🎩🐇 The Federal Reserve, ever the master of financial sorcery, ended its QT program and conjured up $13.5 billion in liquidity, which, of course, coincidentally coincided with Bitcoin’s ascent. 🧙‍♂️✨

The Fed’s QT Withdrawal: A New Era of Liquidity, or Just a Temporary Glitter?

The Federal Reserve, ever the master of financial sorcery, ended its QT program and conjured up $13.5 billion in liquidity, which, of course, coincidentally coincided with Bitcoin’s ascent. Traders, ever the eager spectators, reacted with the enthusiasm of children at a candy store, convinced that the money supply’s easing was a sign of divine providence. 🤑

Soon after the announcement, Bitcoin began to climb during early trading hours. The rise stayed steady because buyers continued to respond to the new liquidity. More traders viewed the move as a sign that conditions may remain easier in the coming months. 🕵️‍♂️

ETF activity increased once U.S. markets opened, and this brought more support to the price. Many investors had waited for confirmation of the Fed’s shift, and they then moved into spot Bitcoin ETFs. This combined activity helped Bitcoin stay above $90,000 through the day. 📈

Vanguard’s New ETF Access Brings More Demand: Or, How Traditional Investors Learned to Stop Worrying and Love Crypto

Vanguard, that paragon of prudence, said it would allow customers to trade crypto ETFs starting December 2, and this drew attention from traditional investors. The decision opened access to ETFs tied to Bitcoin, Ethereum, XRP, and Solana. This also expanded the pool of buyers entering the market. 🧠💸

Eric Balchunas noted that Bitcoin gained about 6% near the U.S. open. He said the move lined up with the start of new ETF trading by Vanguard customers. He suggested the timing supported the idea that new demand drove the price action. 🤯

THE VANGUARD EFFECT: Bitcoin jumps 6% right around US open on first day after bitcoin ETF ban lifted. Coincidence? I think not. Also $1b in IBIT volume in first 30min of trading. I knew those Vanguardians had a little degen in them, even some of the most conservative investors…

– Eric Balchunas (@EricBalchunas)

Trading volume grew quickly during the first minutes of the session. IBIT crossed $1 billion in volume within the first half hour. This showed strong interest from a group of investors who had been unable to buy such products before. 🚀

 

Related Reading:  Bitcoin ATH in Sight Says Max Keiser After Nasdaq IBIT Options Move

Rate Cut Expectations Push Momentum Higher: Or, Why Traders Are Betting on a Fed That’s Less of a Scrooge

Traders increased their expectations for rate cuts in 2025, and this added more support to Bitcoin. Kalshi data showed the odds for a third cut reached 90 percent. This view encouraged more buying across risk assets because policy may ease further next year. 🧑‍💼

Short sellers faced pressure as the market pushed higher. Data from Coinglass showed more than $135 million in short positions were liquidated after Bitcoin passed $90,000. These liquidations added more upward pressure as positions were forced to close. 💸

Funds continued to add exposure as confidence improved. Tom Lee said the current pace could push Bitcoin toward a new record early next year. Markets will watch upcoming Fed meetings for more clues about the future rate path. 🧭

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2025-12-03 10:04