An exchange: The Federal Reserve's shift from balance sheet reduction to net injection may provide support for the crypto market

ChainCatcher news, a certain exchange posted an analysis on platform X stating that the Federal Reserve announced a 25 basis point rate cut this week, which was in line with expectations. However, its plan to conduct U.S. Treasury Reserve Management Purchases (RMP) within the next 30 days is, to say the least, a positive signal.

This liquidity injection is coming earlier than expected, and reserve growth may continue until April 2026. The exchange believes that the Federal Reserve's shift from balance sheet reduction to net injections is seen as "mild quantitative easing" or "implicit quantitative easing," which could provide support to the cryptocurrency market. Combined with RMP and federal funds futures indicating two rate cuts (50 basis points) in the first nine months before 2026, this suggests that market hawkish sentiment may be lower than expected.