2025-12-08 15:26:23

The most intense week of central bank activity at the end of the year is just around the corner. Can you smell the gunpowder in the air?

This time, a 25 basis point rate cut by the Fed is basically a done deal, with the probability already surging to 88%. But what’s really making the market hold its breath are rumors that the bond-buying program might be restarted. Former New York Fed expert Cabana has hinted that Powell could announce a $45 billion per month bond purchase plan in January—what does this mean? Quantitative tightening (QT) would be coming to an end, and balance sheet expansion mode would be back on.

A major liquidity injection is on the way.

What’s even more unusual is that this doesn’t look like a solo act by the Fed. Bank of America and UBS have both been singing the same tune recently, and New York Fed officials like Williams have repeatedly warned about “tight reserve levels.” Repo market rates keep hitting their upper limits, and the warning lights for liquidity stress are already flashing.

At the same time, central banks in Australia, Canada, and Switzerland all have policy decisions coming up. Things are even more explosive in Japan—Bank of Japan Governor Ueda has taken a clear hawkish stance, with rate hike expectations soaring to 90%, and Japanese government bond yields hitting a 17-year high. Keep in mind, once yen carry trades start to unwind, both US Treasuries and US stocks could take a hit.

So, the question is: Is the Fed just going through the motions with a routine rate cut, or is it preparing to launch “Quantitative Easing 2.0”? If Japan really does hike rates, could it trigger a chain reaction in global bond markets? We’ll get the answer on Wednesday.

As for ETH, SOL, ZEC, and other coins—their next moves might all depend on how this macro shift plays out.

ETH-5,85%

SOL-6,68%

ZEC-8,11%

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FOMOSapien

· 2025-12-11 06:17

Central banks are really making big moves this week. Is QT coming to an end? Then our crypto market needs to rise. Over in Japan, daring to raise interest rates, and when the arbitrage trades close, the US stock and bond markets tremble—that chain reaction is too intense. An 88% interest rate cut + QE restart sounds like opening the floodgates for liquidity. ETH and SOL might take off. Powell's move is quite ruthless. Let's wait until Wednesday to see the outcome. Has QT really come to a conclusion? I still feel like there will be repeated tug-of-war.

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alpha_leaker

· 2025-12-09 06:14

Tension? This isn’t just tension, it’s about to blow up! What does it mean that QT is ending? Is the era of massive liquidity about to return? I need to check my positions right away.

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LuckyHashValue

· 2025-12-08 15:54

Damn, is QT coming to an end? Isn’t this a slap in the face to the previous tightening policies? Hilarious. If Japan actually dares to hike rates, will the unwinding of arbitrage trades crash the US stock market? We’ll see the truth on Wednesday—only the bold dare to enter the market now. This round is truly a central bank free-for-all; the market’s going to bleed dry. The Fed’s show is getting wild—is a $45 billion bond purchase program really decided so casually? They’ve been talking about tight reserves for so long, and now suddenly they want to inject liquidity? With the yen appreciating, things are about to get messy. US Treasury yields are going to go crazy. For crypto, it all depends on macro trends next. Can ETH make a comeback this week? QE 2.0 is on the way—is a flood of liquidity far behind?

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GateUser-7b078580

· 2025-12-08 15:49

Data shows an 88% probability of a rate cut... However, is QT really going to stop? Let's wait and see the specific numbers on Wednesday before making any conclusions. Counting the liquidity gap by the hour, a $45 billion scale is indeed an unreasonable mechanism, and miners are taking too much. Japan has a 90% rate hike expectation? When arbitrage positions are closed, ETH will likely shake hard; the historical low may be just around the corner. Problems are problems, but after observing the pattern, a collapse is inevitable. Be patient and wait for the data to come out.

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OnchainFortuneTeller

· 2025-12-08 15:46

Oh my, it's QE2.0 again. Are they really going to flood the market with liquidity this time? As soon as Japan raises interest rates, US stocks and bonds will crash, and the crypto market will suffer alongside... $45 billion in bond purchases? That's basically printing money, inflation is about to flare up again. We'll know the outcome on Wednesday. I'm betting five USDT on major volatility. Huh, the repo market has hit its limit. This liquidity crisis is serious. Once yen unwinding starts, nobody can say for sure if ETH can hold up. QT is really about to end, feels like the whole market has been waiting for this moment. If Powell really pulls this move, stablecoins might have to be over-collateralized.

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GasFeeTears

· 2025-12-08 15:35

These are all old clichés. What really matters is the flow of funds. --- If Japan raises interest rates, US Treasuries will collapse, and then the crypto market will blow up along with it. --- $45 billion bond purchase? Smells like more money printing to me. Honestly, I don't buy it. --- Every time central banks have intensive meetings, someone cries wolf. And then what happens? --- Ending QT sounds good, but even if liquidity comes in, crypto prices might not go up. --- That guy Ueda can be as hawkish as he wants, but it's the unwinding of yen carry trades that's really exciting. --- We'll know the outcome on Wednesday, so there's no point speculating now. --- Feels like this article is just hyping things up. The reality is probably not that dramatic. --- When ETH drops, no one cares about macro. When it rises, suddenly there are central bank analysts everywhere. --- Damn, another round of macro bets where no one knows if they can actually make money.

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