Everyone is focused on ETF approval and halving cycles. But deeper changes may be happening quietly in the background. Quantitative tightening (QT) may end on December 1st. It’s a policy that is quietly draining liquidity from markets around the world.
And if that happens, the ripple effects will extend beyond Wall Street. They reach all liquidity-driven assets in DeFi, altcoins, and cryptocurrencies. In this episode, we track the signals the market is already flashing. Decoding what central bank policy means for digital assets. And here’s the real question: Is the next wave of cryptocurrencies already forming beneath the surface?
What is quantitative tightening or QT?
Yesterday, the Fed cut interest rates by 25 bps. That’s not surprising, it was already factored in. But this is not the real story. This story is on another level. What I’m talking about is the Fed ending quantitative tightening (QT) on December 1st.
Fed announces QT will end on December 1st
— Benjamin Cowen (@intocryptoverse) October 29, 2025
But what exactly is QT? QT is a monetary policy used by central banks to reduce liquidity. This is the opposite of quantitative easing or QE. Now, in contrast, QE injects money into the financial system.
📚 Insights:
Quantitative Easing (QE) = central bank injects liquidity by purchasing assets (such as government bonds) to stimulate the economy.
Quantitative Tightening (QT) = central bank depletes liquidity by selling or maturing assets to reduce inflation.
🧠 Think of QE like this… pic.twitter.com/UJoto6eGDJ
— AltCoiners.live (@alt_coiners) April 26, 2025
During the QT period, central banks sell government bonds. Another option is to let it mature without reinvesting. This process therefore withdraws cash from the economy. It shrinks central bank balance sheets. In other words, it will reduce inflation.
Therefore, the goal of QT is twofold.
- cool inflation
- Market overheating is moderate.
This is done by raising interest rates, moving less money around and making borrowing more expensive. In other words, a decline in liquidity means a tightening of financial conditions. Therefore, investors tend to take less risk. Two markets that will feel this impact first are stocks and cryptocurrencies. The reason is that it is a liquidity sensitive asset and tends to fall first.
QT affects yields, interest rates, and the availability of credit. When bonds are sold, yields rise and capital is pulled away from risky assets. This could strengthen the local currency and curb speculative momentum. However, a prolonged QT could put pressure on liquidity across global markets. And this can lead to volatility and credit stress.
QT ending
Therefore, when QT ends, liquidity returns and risky assets typically rebound. Investors are closely monitoring these changes. This is because liquidity determines sentiment and price direction. In other words, quantitative tightening deprives financial markets of fuel. It is important to understand its timing and scale. This allows you to predict how money will flow into or out of cryptocurrencies and other high-risk sectors. This means if you have any dry powder left, release it now before prices skyrocket.
FOMC analysis:
QT ends → QE starts
Lower interest rates: financial repressionReal yields collapse towards 2026 Gold, BTC, SPX soar
The playbook has been written
— Miad Kasravi (@ZFXtrading) October 29, 2025
What does the end of QT mean for altcoins?
We have already briefly touched on what the end of QT means. Let’s take a closer look at it here.
Once QT ends, the central bank will stop withdrawing liquidity from the system. This change would tend to ease financial conditions and could encourage flows into risk assets. This includes cryptocurrencies and altcoins. Therefore, there is a higher possibility of capital turnover. Rotate from safe assets to more volatile and more rewarding tokens. This potentially gives altcoins a clearer runway. This could put altcoins ahead of the pack. Therefore, there is no longer any need to play catch-up behind major players like Bitcoin.
The Fed has confirmed that liquidity may return.
The Fed announced it would cut interest rates by 25 bps and end QT on December 1st.
This means two important changes: reduced liquidity and prevention of balance sheet drains.
Simply put, the Fed will halt capital outflows from… pic.twitter.com/uRSLEywJ8i
— Bull Theory (@Bull Theoryio) October 29, 2025
However, this does not automatically mean large-scale asset purchases. Or something like a full-throttle liquidity injection. Policy changes themselves do not guarantee price increases. The upside also depends on actual liquidity expansion. And don’t forget the trust of investors.
It is also quite possible that this effect is partially factored in. It seems that the market was already anticipating the end of QT. This will reduce the impact.
Therefore, even in a favorable macro environment, altcoins are still exposed to unique risks. for example,
- technological or regulatory developments;
- token economics.
- Network health and relative competition.
Sound like a familiar topic? Yes, these are the basics of the project. Macro rallies help, but they are no substitute for on-chain fundamentals. Therefore, if you are looking at altcoins, this macro shift increases the likelihood of opportunity. However, that in itself does not guarantee an alternate season. But the opportunity is there and it’s knocking on the door. With that said, let’s take a look at which altcoins can benefit from this.
What’s the atmosphere like? Cautious optimism.
Liquidity is increasing, but confidence is low.
See how the community is reading the Fed and have your voice heard on CMC topics
🔗
4/4
— CoinMarketCap (@CoinMarketCap) October 30, 2025
Solana ($SOL)
Solana ($SOL) is gaining attention with two new spot ETFs. One from bitwise and one from grayscale. The Bitwise ETF started with $222 million in assets. On its first trading day, it generated $56 million in volume. These are impressive numbers.
Latest: ⚡ Bitwise’s Solana Staking ETF launches on the New York Stock Exchange with $222 million in assets and $56 million in first-day trading volume, offering institutional investors SOL price exposure and annual staking yields of up to 7%. pic.twitter.com/vQSKkXShrc
— CoinMarketCap (@CoinMarketCap) October 29, 2025
Solana also witnessed the inside of a Western Union ship. The company chose Solana over XRP and will move an estimated $100 billion annually on Solana.
Educational institutions will start investing heavily in Solana. Western Union also greases the Solana rails. You can get in early and front-run by adding $SOL to your portfolio. The current price of $195 may be a bargain.
Ethereum ($ETH)
Ethereum ($ETH) and Tom Lee’s Bitmine now seem like twins. Bitmine’s $ETH Treasury strategy continues to add to its already huge fund. Check out my video about Bitmine and Ethereum here. So Bitmine purchased an additional $135 million worth of $ETH. This brings the total value of their ETH bag to an astonishing $13 billion. We aim for a 5% share of all available $ETH.
Tom Lee bought an additional $135 million in ETH
Two new addresses withdrew a total of $135.1 million in ETH from FalconX. These movements match Bitmine’s known acquisition patterns.
Bitmine currently holds over $13 billion of ETH. The target is 5% of the total supply. pic.twitter.com/BwZVEiblJP
— Arkham (@arkham) October 29, 2025
We are now in the “capital rotation to altcoins” phase. $ETH is at the top of this list, giving you the first benefit. The current price of $ETH is hovering around $4,000, so it may not be available at this price for a while. If you’re happy with 2x to 3x, you’re better off loading up on $ETH.
Capital rotation to ARTZ begins
Same pattern as 2017 and 2021
Alto Season 2025 Loading… pic.twitter.com/kpp1g9QPte
— Linton Worm (🍏,🪱) (@LintonWorm) October 28, 2025
Sui Network ($SUI)
Sui Network and its $SUI token are at the end of my final list of altcoins. This is currently the most exciting emerging Layer 1. It creates technological momentum and attracts institutional interest. The Sui ecosystem is also strong and growing.
Sai Foundation’s focus in the coming days will be to increase developer activity on Sui. This means more new projects. A great active ecosystem brings positive aspects to $SUI bags. The Ledger hardware wallet recognized this. We currently offer all Sui ecosystem tokens in our wallet. This brings in new users and activities. If you already own $SUI, you’ll love this. If not, it might be the right time to enter at a price of $2.49.
We are focused on the entire ecosystem, supporting over 15,000 coins and tokens, from foundational assets like Bitcoin to major ecosystems like Solana.
We are very welcome this year too. @SuiNetwork And that native token got an incredible response from Sui…
— Ledger (@Ledger) October 23, 2025
So do you expect the end of QT to have a positive impact on altcoins? Could it trigger a bull market in cryptocurrencies during the fourth quarter? Let us know in the comments section. Join the discussion on X and Discord.
Disclaimer
The information discussed on Altcoin Buzz does not constitute financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are the thoughts and opinions of the writers and reviewers relative to their acceptable level of risk tolerance, and their risk tolerance may differ from yours.
We are not responsible for any losses you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other virtual currencies are high-risk investments, so please use caution.
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