The post Assessing Bitcoin’s 12% price hike since 01 December – What happened? appeared on BitcoinEthereumNews.com. Inflation in the United States might be easing up again, with real-time Truflation data highlighting a 2.45% YoY print ahead of the next FOMC decision. All while official CPI’s reading remains close to 3% – Highlighting a clear cooling trend ahead of the FOMC meeting in five days.  The timing here is interesting, especially since the Fed also ended Quantitative Tightening (QT) as of 01 December 2025. Source: Truflation US Inflation Index Bitcoin, for its part, has already reacted to the same with a sharp upside move too. In fact, the timing places Bitcoin in a familiar position, front-running policy expectations as the market hunts for clarity on cuts and liquidity direction. QT shutdown changes the liquidity backdrop The Fed’s balance sheet tells the second half of this story. Total assets peaked near $8.97 trillion in 2022. The most recent WALCL reading from 03 December placed assets near $6.54 trillion – Reflecting about $2.43 trillion in cumulative drawdowns through QT2. November alone saw roughly $37 billion in run-offs, even as the Standing Repo Facility returned to zero usage. Source: X/Wolf Richter That zero SRF print may be a sign of calm money markets. It also might support the view that the Fed can pause balance sheet shrinkage without triggering stress. QT officially ended on 01 December. The mechanical liquidity drain has stopped, even if QE has not started yet.  How did Bitcoin’s price react? On the 4-hour chart, Bitcoin’s price rallied by roughly 12.6% from the post-QT low, climbing from $83.5k towards the $93k–$94k band. Market bulls defended the $90.9k area as near-term support after the initial squeeze, while sellers still capped momentum near its most recent local highs. Source: TradingView At the time of writing, the world’s largest cryptocurrency seemed to be trading in a tight range – One… The post Assessing Bitcoin’s 12% price hike since 01 December – What happened? appeared on BitcoinEthereumNews.com. Inflation in the United States might be easing up again, with real-time Truflation data highlighting a 2.45% YoY print ahead of the next FOMC decision. All while official CPI’s reading remains close to 3% – Highlighting a clear cooling trend ahead of the FOMC meeting in five days.  The timing here is interesting, especially since the Fed also ended Quantitative Tightening (QT) as of 01 December 2025. Source: Truflation US Inflation Index Bitcoin, for its part, has already reacted to the same with a sharp upside move too. In fact, the timing places Bitcoin in a familiar position, front-running policy expectations as the market hunts for clarity on cuts and liquidity direction. QT shutdown changes the liquidity backdrop The Fed’s balance sheet tells the second half of this story. Total assets peaked near $8.97 trillion in 2022. The most recent WALCL reading from 03 December placed assets near $6.54 trillion – Reflecting about $2.43 trillion in cumulative drawdowns through QT2. November alone saw roughly $37 billion in run-offs, even as the Standing Repo Facility returned to zero usage. Source: X/Wolf Richter That zero SRF print may be a sign of calm money markets. It also might support the view that the Fed can pause balance sheet shrinkage without triggering stress. QT officially ended on 01 December. The mechanical liquidity drain has stopped, even if QE has not started yet.  How did Bitcoin’s price react? On the 4-hour chart, Bitcoin’s price rallied by roughly 12.6% from the post-QT low, climbing from $83.5k towards the $93k–$94k band. Market bulls defended the $90.9k area as near-term support after the initial squeeze, while sellers still capped momentum near its most recent local highs. Source: TradingView At the time of writing, the world’s largest cryptocurrency seemed to be trading in a tight range – One…