Coinbase: The Federal Reserve's "invisible QE" will support the crypto market, and the policy environment may be more accommodative than expected

Coinbase Institutional posted on social media that the Federal Reserve's announcement of a 25 basis point rate cut this week aligns with market expectations, but its plan to implement Treasury reserve management purchases within the next 30 days can at least be seen as a positive signal.

Here are the specific arrangements for the plan:

• Initial operation scale: $40 billion
• Start date: December 12.

This liquidity injection comes earlier than expected, and reserve growth may continue until April 2026. We believe that the Federal Reserve's shift from balance sheet reduction to net injection can be viewed as "mild quantitative easing" or "stealth QE," which may provide support to the cryptocurrency market. Considering the reserve management purchase plan along with the federal funds futures market's expectation of two more rate cuts (a total of 50 basis points) before the first nine months of 2026, the policy environment may be more accommodative than anticipated.