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Fed T-Bill Purchases Spark Confusion, But They Are Not Real QE

Fed T-Bill Purchases Spark Confusion, But They Are Not Real QE

CryptoNewsNetCryptoNewsNet2025/12/11 10:57
By:coinfomania.com

The new purchases of T-bills by Fed are pointed out by Crypto Rover, and it explains that they are not considered quantitative easing. On December 10, 2025, the Fed declared that it would purchase Treasury bills in the amount of 40 billion monthly. These measures are to control the liquidity in the short term and stabilize the funding markets. They do not contribute to the monetary stimulus, or the balance sheet, in any significant manner. Real QE occurs when there is extreme stress where the Fed purchases assets that are of a longer duration in order to reduce the long-term yields. Crypto Rover capitalizes on the situation to de-hype the crypto community and reason why traders should not see normal business activities as bullish.

Real QE Occupies Crisis

The post provides a comparison of the present environment to historical episodes of QE. The latter programs occurred in terms of such extreme events as the financial crisis of 2008 and the pandemic of 2020. The Fed purchased trillions of long-term securities and provided liquidity into the system. Stocks soared. QE1 pushed the S&P 500 up 84%. QE2 lifted it by 30%. QE3 delivered 29%. COVID-related QE4 triggered over 100 percent gains. The congruent chart depicts the extent to which real QE sinks markets. Now Fed has not caused anything of that extent of intervention. The distinction is important since traders usually figure that any bond buying amounts to stimulus. C crypto Rover emphasizes that this premise may mislead investors when there is a lack of clarity in the macro-environment.

Mixed Reaction in Crypto Community

Crypto traders are divided in their opinion. There are those who assert that the Fed is practising stealth QE. Some other people refute the notion and cite ongoing inflation and Fed sobering messages. Crypto Rover invites the audience to apply historical context rather than emotions. He describes that true QE drove Bitcoin into massive rallies at previous cycles and this is the reason why many traders are eager to reach conclusions. He also states that the move is not as important as before and does not assure a huge pump. The message is to hold on to expectation since market digests recent words and continuous volatility by Powell.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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