Coinbase: The Federal Reserve’s shift from balance sheet reduction to net injection may boost the cryptocurrency market

The Federal Reserve has cut rates by 0.25% as anticipated, alongside plans for Reserve Management Purchases of Treasury securities. This liquidity infusion is seen as supportive for the cryptocurrency market.

The transition from balance sheet reduction to net injection indicates a more lenient approach, described as light quantitative easing. Futures suggest potential rate reductions in 2026, hinting at a less aggressive monetary policy.

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