The Federal Reserve has recently cut its benchmark interest rate by 25 basis points and announced an end to its quantitative tightening program, set to conclude in early December. This shift in monetary policy is expected to increase liquidity in the financial system, potentially marking the end of an economic tightening era.
Analyst Michael van de Poppe argues that these changes could spark a risk-on cycle, where capital moves away from traditional safe-haven assets like gold—which has fallen nearly 10% from its recent peak—toward higher-yielding opportunities, including cryptocurrencies. He describes the current market phase as an exhaustion zone, characterized by trader capitulation and compressed volatility, which historically precedes a reversal.
Van de Poppe projects that Bitcoin (BTC) could reach valuations between $150,000 and $170,000 if sustained liquidity inflows occur. As of November 3, 2025, Bitcoin's price is approximately $107,837, having declined 2.9% in the past 24 hours and 6.49% over the past week. Its market capitalization stands at around $2.15 trillion, with a 24-hour trading volume of roughly $47.9 billion.
A confirmed breakout above the $112,000 resistance level for Bitcoin is seen as a critical trigger for broader market recovery. While altcoins face a challenging environment, van de Poppe believes that a liquidity-driven rally could revive the sector, potentially leading to a new altcoin season. He noted, Gold peaks when liquidity is trapped in safety. Once fear fades, capital returns to growth—and crypto stands to benefit most.
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