According to @BullTheoryio, markets are preparing for a Federal Reserve balance-sheet pivot, with some banks expecting roughly 45 billion dollars per month of bond purchases starting January 2026, signaling an early-stage QE setup, source: @BullTheoryio, Dec 9, 2025. The author notes the S&P 500 closed just below its all-time high despite restrictive rates, indicating investors are pricing future liquidity rather than current conditions, source: @BullTheoryio, Dec 9, 2025. The post highlights a split economy where asset-owning households benefit from rising equities, while small businesses and lower-income consumers face high borrowing costs, rising layoffs, and credit stress, source: @BullTheoryio, Dec 9, 2025. The author argues rate cuts alone cannot bridge this gap, making the Fed’s 6.5 trillion dollar balance sheet the key policy lever to watch after the December 9-10 FOMC meeting, source: @BullTheoryio, Dec 9, 2025. The current setup described includes stocks near record highs, a December rate cut seen as almost certain, and growing expectations of 2026 liquidity expansion, source: @BullTheoryio, Dec 9, 2025. For crypto traders, the author states that once liquidity expectations turn, risk assets typically lead, with crypto often reacting first, implying upside beta potential for BTC and ETH if the Fed hints at QE, source: @BullTheoryio, Dec 9, 2025. Near-term trade focus is on FOMC guidance about balance-sheet policy, as markets tend to move before official announcements, source: @BullTheoryio, Dec 9, 2025.

According to @cryptorover, Deutsche Bank expects the Federal Reserve to start quantitative easing in Q1 2026 and had previously called the end of quantitative tightening at the last meeting, source: X post by @cryptorover on Nov 8, 2025, https://twitter.com/cryptorover/status/1987168482325372955. @cryptorover characterizes this as a liquidity-positive setup for risk assets, stating get ready for the money printer, a cue crypto traders watch when positioning in BTC and ETH, source: X post by @cryptorover on Nov 8, 2025, https://twitter.com/cryptorover/status/1987168482325372955.