Binance Research – The End of QT: From Macro Headwind to Tailwind

The main theme of the report is the analysis of changes in US monetary policy, particularly the end of the quantitative tightening (QT) program and its implications for traditional and cryptocurrency markets.

Key findings include: The US Federal Reserve (Fed) was forced to stop QT due to acute liquidity stress in the financial system despite ongoing inflation. The main causes of the liquidity crisis are related to the excess of $1 trillion in the US Treasury General Account (TGA) and the government shutdown. The end of QT and the shift to a more accommodative monetary policy could be a turning point for cryptocurrencies, strengthening them as 'antifragile' assets. In the medium to long term, the Fed is expected to start 'QE-lite', potentially triggering a new cycle of cryptocurrency growth.