Ted Pillows on Altcoins: Fed’s End to QT Could Keep Crypto Under Pressure

Core Insights - Popular market analyst Ted Pillows discusses the future of altcoins in light of the Federal Reserve's plans to end its Quantitative Tightening (QT) program [1][2] - The Fed intends to suspend QT runoff by December 1, 2025, which involves reinvesting proceeds from maturing mortgage-backed securities into Treasury bills [2][3] Market Impact - Historical data shows that a similar move by the Fed in October 2019 led to a 42% decline in the altcoin market cap in the subsequent months [3][4] - The altcoin market remained at low levels until March 2020, when Quantitative Easing (QE) was introduced, providing relief for altcoins [4] Liquidity Needs - Ted Pillows emphasizes that the altcoin market requires liquidity, which can be achieved through either the Fed starting QE or the Treasury releasing TGA liquidity into the economy [5] - The likelihood of the Fed initiating QE in the near term is considered low, and the TGA option is dependent on the suspension of the US government shutdown that began on October 1, 2025 [5][6] Market Outlook - The current market outlook suggests potential underperformance in the crypto market for some time [6]