Bitcoin Price Drops 10% on ETF Outflows, Ignoring Fed’s New Liquidity Shift

By Coin Edition
about 8 hours ago
SHIFT ETF BTC DROPS RSRV
  • The Federal Reserve is halting its balance sheet reduction (QT), a move that signals a significant dovish policy shift.
  • The Fed also injected $29.4 billion via its standing repo facility, the largest such operation since the pandemic.
  • This macro liquidity shift contrasts sharply with Bitcoin’s $1.34 billion in ETF outflows and a 10% price drop.

The Fed has signalled the end of its long-running balance sheet runoff, a big change in monetary policy. After reducing its asset portfolio from nearly $9 trillion down to about $6.6 trillion, the central bank stated it will stop this reduction and start reinvesting money from bonds that are paid off, effectively putting its quantitative tightening (QT) on hold.

At the same time, the Fed injected about $29.4 billion into the banking system via its standing repo facility (SRF) on October 31, the largest such operation since t…

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