Fed Ends QT, XRP and Bitcoin Surge as Liquidity Returns

iconTheCryptoBasic
Share
Share IconShare IconShare IconShare IconShare IconShare IconCopy

As per The Crypto Basic, the U.S. Federal Reserve ended its Quantitative Tightening (QT) program on Monday, injecting over $13 billion into the financial system. Crypto investor Paul Barron noted that assets like XRP and Bitcoin may 'bring the fire' as liquidity returns. At press time, Bitcoin rose 6.5% to $93,965, while XRP surged over 10% to $2.22, driven by record inflows into XRP ETFs. Analysts suggest the liquidity shift could favor utility tokens like XRP, which now benefit from real-time settlement use cases and institutional adoption. However, some warn of potential short-term volatility, citing a similar setup in July 2024 that triggered Bitcoin's sharp decline.

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.