The Fed’s Liquidity Shift: Why Bitcoin Might Ignite First

The Federal Reserve’s $2.5 trillion reverse-repo (RRP) facility has been largely depleted, leaving a void in the global liquidity landscape as bank reserves approach stress levels. With Chair Powell hinting at an imminent end to quantitative tightening (QT), the global monetary environment is shifting from contraction to expansion. This shift in liquidity presents a unique opportunity for Bitcoin, historically reacting earlier and more strongly to changes in USD liquidity cycles than other assets.