Coinbase: The Fed's shift from balance sheet reduction to net injection may provide support for the crypto market.

According to Mars Finance, Coinbase Institutional published an analysis on the X platform stating that the Federal Reserve's announcement of a 25 basis point rate cut this week was in line with expectations. However, its plan to conduct Reserve Management Purchases (RMPs) of U.S. Treasury securities within the next 30 days is at least a positive development. This liquidity injection came earlier than expected, and reserve growth may continue until April 2026. Coinbase Institutional believes that the Fed's shift from balance sheet reduction to net injection is seen as "light quantitative easing" or "implicit quantitative easing," which could support the cryptocurrency market. Combined with the RMPs and federal funds futures indicating two rate cuts (50 basis points) in the first nine months of 2026, this suggests that market hawkish sentiment may be lower than expected.