Coinbase: The Fed's "hidden QE" will support the crypto market; the policy environment may be more dovish than expected.

Coinbase Institutional posted on social media that while the Federal Reserve's 25-basis-point rate cut this week was in line with market expectations, its plan to implement Treasury reserve management purchases over the next 30 days can at least be seen as a positive signal. The plan's details are as follows: • Initial operation size of $40 billion • Start date of December 12th. This liquidity injection came earlier than expected, and reserve growth may continue until April 2026. We believe the Fed's shift from balance sheet reduction to net injection can be seen as "light quantitative easing" or "hidden QE," which may support the cryptocurrency market. Considering the reserve management purchase program and the federal funds futures market's expectation of two more rate cuts (totaling 50 basis points) in the first nine months of 2026, the policy environment may be more moderate than expected.