Fed ends quantitative tightening
Tomorrow, December 1, the Fed will end quantitative tightening. Why is it so important? First, a short economics lesson from me:
Quantitative Tightening (QT) relies on reducing the amount of money in circulation by limiting the purchase of assets by the central bank. This action reduces liquidity and typically raises financing costs, which slows the economy and helps reduce excessively high inflation. Quantitative Easing (QE) is the monetary policy of increasing the amount of money in the economy. The central bank then purchases bonds or other financial assets, which increases liquidity in the system and reduces credit costs. The aim of such action is to stimulate the economy and increase investment.
The previous bitcoin boom ended because the Fed announced that it was starting quantitative tightening – it had to fight “covid” inflation. The boom in 2020-2021 was, in turn, sponsored by easing – the Fed printed dollars to support the economy infected with the coronavirus and lockdown.
Over the last few months, the price of bitcoin has been rising, and so have altcoins. However, these increases disappointed many – this was not the boom we were waiting for! And all because the Fed was conducting quantitative tightening in the background – sucking dollars from the market to fight inflation. Tomorrow, December 1, will end this process.
So, will the cryptocurrency boom accelerate again from tomorrow, with increased force? It is difficult to answer this question clearly because Tomorrow the Fed will only finish tightening, but will not start easing immediately. So we only have an introduction to reprinting. This is good news for cryptocurrencies, but not great yet. This is why the situation on the dance floor is so uncertain.
Today, however, the bulls are trying to go on the offensive. Bitcoin price is heading towards USD 92,000.
Ether is also rising slightly on the chart.
BTC ETFs are slowly making bolder purchasing moves:
According to the analyst
We see the recent surge in inflows into XRP ETFs, which have already exceeded $331 million in leading products – such as Canary’s XRPC – as a clear sign of accelerating institutional demand for regulated cryptocurrency exposure. The growing interest is a stabilizing factor in the still volatile spot and on-chain markets and reinforces the broader trend towards structured, compliant investment instruments. As more traditional investors enter cryptocurrencies through ETFs, liquidity is increasing across the ecosystem, reducing reliance on short-term, speculative flows and supporting sentiment in the altcoin market.
In the case of XRP and salt, this process has significant consequences. XRP is well-positioned to benefit from this given its regulatory clarity and growing role in institutional payment systems, while Solana’s high-performance architecture continues to attract attention — despite recent, moderate outflows from ETFs. Both assets stand to benefit significantly from the next wave of investor participation, with availability through ETFs acting as a key bridge for new capital flowing into the sector.
In the short term, we expect XRP to trend towards the $2.50-$2.80 range as ETF momentum continues to pick up. Solana could also recover to $155-180 if technical support levels hold and inflows return. Together, these trends reflect a maturing cryptocurrency market, where regulated products, institutional adoption, and scalable infrastructures are driving sustainable growth and pushing digital assets even closer to the financial mainstream.
