The Federal Reserve is set to inject approximately $23 billion into financial markets next week, signaling a potential shift toward quantitative easing measures. This move represents an expansion of monetary stimulus after a period of tightening policy.

What does this mean for crypto? Market observers are pointing out that increased liquidity typically flows into alternative assets during QE cycles. When central banks expand money supply, investors often seek exposure to uncorrelated assets like Bitcoin and Ethereum to hedge against currency devaluation.

Historically, periods of monetary expansion have coincided with strengthened performance in digital assets. The reasoning is straightforward—easy money conditions reduce real yields on traditional fixed-income instruments, making risk assets more attractive on a relative basis.

Whether this translates into sustained bullish momentum depends on broader economic conditions and market sentiment. But the liquidity picture is undeniably shifting in favor of risk-on positioning.