Bitcoin climbs above $90K as the Fed ends QT, liquidity rises, Vanguard opens crypto ETF access, and traders boost rate-cut expectations
Bitcoin moved above $90,000 after the Federal Reserve ended its quantitative tightening program. The move came as new liquidity entered the market and as traders raised their expectations for rate cuts next year. The rise also matched stronger demand for spot Bitcoin ETFs when U.S. markets opened.
QT Withdrawal Opens New Liquidity for Markets
The Federal Reserve ended its QT program and added $13.5 billion in liquidity, and this helped lift Bitcoin. Traders reacted quickly because the change eased pressure on the money supply. The shift also improved confidence across markets that had been watching policy signals closely.
Soon after the announcement, Bitcoin began to climb during early trading hours. The rise stayed steady because buyers continued to respond to the new liquidity. More traders viewed the move as a sign that conditions may remain easier in the coming months.
ETF activity increased once U.S. markets opened, and this brought more support to the price. Many investors had waited for confirmation of the Fed’s shift, and they then moved into spot Bitcoin ETFs. This combined activity helped Bitcoin stay above $90,000 through the day.
Vanguard’s New ETF Access Brings More Demand
Vanguard said it would allow customers to trade crypto ETFs starting December 2, and this drew attention from traditional investors. The decision opened access to ETFs tied to Bitcoin, Ethereum, XRP and Solana. This also expanded the pool of buyers entering the market.
Eric Balchunas noted that Bitcoin gained about 6% near the U.S. open. He said the move lined up with the start of new ETF trading by Vanguard customers. He suggested the timing supported the idea that new demand drove the price action.
THE VANGUARD EFFECT: Bitcoin jumps 6% right around US open on first day after bitcoin ETF ban lifted. Coincidence? I think not. Also $1b in IBIT volume in first 30min of trading. I knew those Vanguardians had a little degen in them, even some of the most conservative investors… pic.twitter.com/OKyihvEqqD
— Eric Balchunas (@EricBalchunas) December 2, 2025
Trading volume grew quickly during the first minutes of the session. IBIT crossed $1 billion in volume within the first half hour. This showed strong interest from a group of investors who had been unable to buy such products before.
Related Reading: Bitcoin ATH in Sight Says Max Keiser After Nasdaq IBIT Options Move
Rate Cut Expectations Push Momentum Higher
Traders increased their expectations for rate cuts in 2025, and this added more support to Bitcoin. Kalshi data showed the odds for a third cut reached 90 percent. This view encouraged more buying across risk assets because policy may ease further next year.
Short sellers faced pressure as the market pushed higher. Data from Coinglass showed more than $135 million in short positions were liquidated after Bitcoin passed $90,000. These liquidations added more upward pressure as positions were forced to close.
Funds continued to add exposure as confidence improved. Tom Lee said the current pace could push Bitcoin toward a new record early next year. Markets will watch upcoming Fed meetings for more clues about the future rate path
