Core Insights - The Federal Reserve is preparing to expand its balance sheet again, indicating a new phase of quantitative easing, which has led to increased anticipation among crypto investors for a surge in liquidity [1][2] - The conclusion of the quantitative tightening program and the halt of balance-sheet reductions as of December 1 marks a shift in focus from lowering inflation to prioritizing market stability [2][3] - This policy adjustment is expected to reignite risk appetite among investors, particularly in speculative assets like cryptocurrencies [3] Cryptocurrency Market Impact - The reopening of liquidity taps by the Fed is likely to direct excess capital into the cryptocurrency market, with Bitcoin and Ethereum expected to lead the rally [4] - The anticipated balance-sheet expansion will lower financing costs and increase the appetite for higher-risk assets, benefiting the crypto sector [4] - A return to quantitative easing could trigger a significant short-term bull run in digital assets, reminiscent of the market dynamics seen in 2020 [5]