Recently, the crypto community has been discussing a comparison chart—directly likening the Federal Reserve's short-term Treasury repurchase agreements to "boost" the altcoin market.

The data on the left tells the story of the end of 2021: the Fed's $480 billion T-Bills repurchase operation coincided with a 148-fold surge in the market capitalization of altcoins from the bottom. The prediction on the right is even more aggressive—now, with the Fed planning to purchase $500 billion, some market analysts are estimating that altcoins could rise by 271 times.

This chart looks exciting, but does the underlying logic hold up? Let's start with the Fed's recent actions.

On December 10, 2025, Powell's team announced a new operational plan: starting December 12, they will purchase approximately $40 billion of short-term Treasury bills each month, with more aggressive purchases in the first few months (close to $50 billion per month), mainly to address seasonal liquidity fluctuations. It's important to note—**this is not a new round of QE (quantitative easing)**, but officially termed "Reserve Management Purchases," aimed at ensuring the banking system has "ample reserves" to avoid a repeat of the money market freeze in 2019.

The background is clear: the Fed finished QT (quantitative tightening) on December 1, halting its balance sheet reduction plan. Now, they are changing course, actively purchasing T-Bills to inject liquidity into the system.

Powell's official statement is that this is purely a technical operation and will not affect the direction of interest rate policy. But how does the market view it? Many institutional interpretations boil down to four words—**indirect liquidity injection**. Bond yields may fall, and the funding environment for risk assets (including various altcoins) will become more supportive. If this logical chain holds, then the expected surge in prices also gains a psychological basis.