福禄寿 UV DAO|1月 03, 2026 05:00
OTHERS/BTC is used to track the performance of small-cap altcoins (excluding the top 10 by market cap) relative to Bitcoin. Currently, this ratio has reached its lowest momentum zone in history, and most analysts believe this could signal a bottom for small-cap altcoins. Additionally, the ratio has historically been sensitive to global liquidity and Federal Reserve policies. Historically, significant surges in altcoins against Bitcoin often require aggressive quantitative easing (QE) or a 'risk-on' environment, which might just align with what’s coming in 2026.
The Federal Reserve officially ended quantitative tightening (QT) on December 1, 2025. To maintain sufficient reserves in the banking system, the Fed is now continuously purchasing bonds through open market operations, with assets surging by approximately $45.5 billion in the last few weeks of December. It’s estimated that in 2026, the Fed will purchase $35 billion to $55 billion worth of short-term Treasury bonds monthly, injecting a total of around $550 billion in liquidity throughout the year. The Fed in 2026 has entered a full-scale easing phase, combining balance sheet expansion with rate cuts.
While quantitative easing (QE) strictly refers to balance sheet expansion, the Fed’s current rate-cutting measures form a 'combo move' alongside it. Plus, with Powell’s term ending on May 15, Trump is expected to officially announce the next Fed Chair this month. Whether it’s Kevin Warsh, Kevin Hassett, or Christopher Waller, Trump will only pick someone who listens to him—rate cuts, and more rate cuts, nothing but rate cuts.
So, after reading this, what’s the next move? Do you have an answer in mind? But remember, not all altcoins will regain their value—only quality altcoins with real value will. Manage your positions wisely, stay flexible, and remember: we’re investing, not gambling.
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