The Fed shifts to net injection, potentially boosting the crypto market

According to reports from Ha Shilian, Coinbase Institutional analyzed on the X platform that the Federal Reserve announced a 25 basis point rate cut this week, which was in line with expectations. However, its plan to conduct US Treasury reserve management purchases (RMP) over the next 30 days can be seen as a positive signal. This liquidity injection occurred earlier than anticipated, and reserve growth may continue until April 2026. Coinbase Institutional believes that the Fed's transition from shrinking its balance sheet to net injection is viewed as "mild quantitative easing" or "implicit quantitative easing," which could support the cryptocurrency market. Combined with the RMP and federal funds futures indicating two rate cuts in the first nine months of 2026 (50 basis points), it suggests that market hawkish sentiment may be lower than expected.

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