A major shift is underway in the financial world as the Federal Reserve has ended quantitative tightening and begun injecting liquidity back into the system. This strategic intervention, which involved a $13.5 billion injection through overnight repo operations immediately following the end of quantitative tightening, signals a change towards a more bullish environment for risk assets, including cryptocurrencies. The timing of this shift is significant as it comes after months of drastic withdrawal from financial systems, followed by a sharp downturn in the cryptocurrency market. Analysts believe this marks the start of an early bull cycle where increased liquidity will propel markets forward, creating a potential breeding ground for future gains. While some remain cautious, predicting a rapid and dramatic Bitcoin rally is becoming popular amongst analysts. Fundstrat’s Tom Lee recently highlighted a historical pattern where significant changes in Fed policy spurred strong market movements, predicting a surge in Bitcoin leading into early 2026, potentially reaching a new all-time high by late January. However, the Bank of Japan’s potential rate hike looms large as a wildcard. This upcoming decision could delay or dampen the effects of the U.S. liquidity shift. The overall sentiment remains optimistic: despite short-term market uncertainty, most experts agree that cryptocurrencies are more responsive to US monetary policies than global decisions. Once the BOJ’s impact becomes clearer, the market is expected to price in the Fed’s new policy direction, and history suggests this could usher in a crypto bull cycle.