The gates of liquidity are truly beginning to turn.

December 1st marked a watershed moment. The Federal Reserve finally hit the brakes—officially ending the quantitative tightening program that began in 2022 and had withdrawn a cumulative $2.4 trillion. Even more crucially, on the very night the program stopped, they injected $1.35 billion into the banking system. This single-day amount was the second highest peak since the pandemic.

This is not a gentle adjustment. From continuous tightening to sudden release, the policy gears have shifted. Previously, the market was speculating on a “possible easing,” but now it is facing a real inflow of funds.

Some analysts have dug up historical data for reference: within three weeks after the last round of QT ended, risk assets saw a strong 17% rebound. Tom Lee even directly predicted that the improvement in liquidity could push Bitcoin to break its all-time high by the end of January next year.

After three years of draining liquidity, the faucet is now turning in the other direction. The market had already anticipated this, but the real test is: How long will this wave of liquidity last? And how much of it can crypto assets capture?

As for how tokens like ZEC, ETH, and SUI will perform, it’s still too early to say. However, the liquidity pendulum is indeed swinging back—this is no longer just speculation.

How much of a rally do you think this round of easing could bring? Or do you think the market has already priced it in?