The Federal Reserve will buy around $40 billion in short-term Treasury bills per month after ending quantitative tightening, framing the move as a technical step to keep the financial system running smoothly. This combination of actions, not seen since 2021, historically triggers movement in risk assets like tech stocks and cryptocurrencies. However, investor Michael Burry warns that the banking system’s reliance on reserves is a sign of fragility. Despite Bitcoin trading sideways, a broader risk-on sentiment is evident in other markets, suggesting a potential catch-up trade in crypto as liquidity increases.

Read more at Yahoo Finance: Analyst warns key Fed decision could reprice crypto after Michael Burry’s alert