Federal Reserve Announces Reserve Management Purchases, Not QE

2 mins mins

Key Points:

Federal Reserve launches reserve management purchases, not classified as quantitative easing.
Program begins December 11-12, focusing on short-term securities.
Market stability expected with indirect effects on cryptocurrencies.

On December 10, 2025, the Federal Reserve announced Reserve Management Purchases to maintain ample bank reserves, distinct from quantitative easing, impacting short-term Treasury securities in the U.S.

This move seeks to manage liquidity without QE effects, potentially stabilizing financial markets, indirectly impacting cryptocurrencies like Bitcoin and Ethereum due to reserve increases.

Federal Reserve to Begin $40 Billion Monthly Treasury Purchases

The Federal Open Market Committee announced the initiation of reserve management purchases (RMPs) of short-term Treasury securities, set to begin on December 11-12, 2025. These purchases, capped at $40 billion monthly, aim to maintain reserves after a recent rate cut.

Unlike quantitative easing, these RMPs focus on stabilizing reserves without aggressive economic stimulus. The program initially targets short-term Treasury bills and securities maturing in three years or less.

“The FOMC directs the purchases of Treasury bills and, if needed, other Treasury securities with remaining maturities of 3 years or less to maintain an ample level of reserves.”

Cryptocurrencies Face Increased Volatility Amid Federal Actions

Did you know? The Federal Reserve’s actions can indirectly influence the cryptocurrency market by stabilizing traditional financial systems.

Bitcoin (BTC) traded at $85,618.09, reflecting a decline of 3.72% over 24 hours, with a market cap of $1.71 trillion as of December 15, 2025, per CoinMarketCap data. Trading volume decreased by 25.92%, indicating cautious market engagement amid ongoing volatility.

bitcoin-daily-chart-5041 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 18:41 UTC on December 15, 2025. *Source: CoinMarketCap*

Financial and technology sectors may see increased stability from these reserve management actions. However, analysts from Coincu highlight that regulatory scrutiny could intensify as financial markets adjust to these new dynamics, underscoring the importance of agile policy responses.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.