Bitcoin News Update: Fed Halts QT, Altcoins Reflect 2019 Bullish Pattern

Federal Reserve's QT Conclusion Sparks Crypto Market Optimism

The Federal Reserve's announcement to wrap up its Quantitative Tightening (QT) program on December 1 has fueled expectations of a renewed bull run for Bitcoin and alternative cryptocurrencies. Many analysts are drawing comparisons to the market dynamics seen in 2019. By stopping the monthly reduction of Treasury securities, the Fed is signaling a shift toward a more supportive monetary policy, which could ease the liquidity pressures that have weighed on risk assets for over two years. This policy change, combined with notable on-chain accumulation trends, is creating an environment reminiscent of late 2019—a period that preceded a major surge in altcoin prices.

Bitcoin Holds Strong as Market Eyes Breakout

Bitcoin has recently maintained crucial support near the $90,000 mark, consolidating as traders anticipate a potential breakout. Market observers point to the 2025 yearly opening price above $93,000 as a significant resistance level. Should Bitcoin surpass this threshold, it could pave the way for a move toward $100,000, according to crypto analyst Michaël van de Poppe. Additionally, data from the futures market indicates that excessive leverage is being flushed out, which may set the stage for a more stable recovery.

Historical Parallels and Altcoin Momentum

The significance of December 1 is heightened by historical precedent. In 2019, the conclusion of QT coincided with substantial gains in altcoins such as Chainlink (LINK), Cardano (ADA), and XRP, all of which experienced double-digit growth as liquidity improved. Currently, LINK/BTC is trading within a range similar to its pre-liquidity shift levels in 2019, while ADA and XRP are reflecting risk profiles reminiscent of that era. Institutional investors are also showing confidence, with Chainlink's Reserve acquiring over 89,000 tokens this week. XRP, having resolved its legal dispute with the SEC, is now positioned to outperform Bitcoin without the regulatory uncertainty that previously held it back.

On-Chain Accumulation and Technical Signals

Long-term Bitcoin holders are increasing their positions at a pace rarely seen, suggesting a bullish outlook. Technical analysis reveals a falling wedge pattern on the OTHERS/BTC chart—a classic indicator of a potential breakout—implying that altcoins could soon gain a larger share of the market once liquidity conditions improve.

Current technical signals, including the falling wedge formation, reinforce the possibility of a strong upward move for altcoins as the QT era ends.

Short-Term Challenges and Regulatory Pressures

Despite the positive outlook, some immediate obstacles remain. Japan's recent regulatory measures, such as requiring crypto exchanges to maintain liability reserves, along with funding pressures in U.S. markets, have created a dual squeeze on liquidity. This has affected stocks, currencies, and cryptocurrencies alike. However, these challenges could prompt the Federal Reserve to take further action to support risk assets in early 2026.

Outlook for Bitcoin and Altcoins

Bitcoin's near-term prospects remain cautiously positive. The asset's spot taker cumulative volume delta (CVD) has shifted from negative to neutral, indicating a healthier market structure. If Bitcoin can successfully retest and hold the $88,000 level, it would strengthen the case for a continued rally. Meanwhile, altcoins stand to benefit from improving liquidity, with XRP's solid technical foundation and Chainlink's institutional backing pointing to significant upside potential.

Looking Ahead: Policy Signals and Market Reaction

As the December 1 deadline approaches, investors will closely monitor comments from Federal Reserve Chair Jerome Powell for insights into future monetary policy. A clear move toward a more accommodative stance could trigger a prolonged bull market for cryptocurrencies, echoing the transformative effects of the 2019 liquidity shift. With Bitcoin stabilizing above $90,000 and altcoins showing stronger fundamentals, the market appears poised to challenge historical resistance levels and potentially enter a new growth phase.