Ted Pillows Predicts Altcoins Struggle as Fed Ends Quantitative Tightening

Market analyst Ted Pillows shared insights on altcoins' future as the Federal Reserve plans to end its Quantitative Tightening (QT) program.

• The Fed will suspend QT runoff by December 1, 2025, reinvesting proceeds from maturing securities into Treasury bills to stabilize holdings.
• Ted highlighted a historical pattern where altcoins fell 42% after the Fed's similar move in October 2019. Altcoins only began to recover with the start of Quantitative Easing (QE) in March 2020.
• This suggests that ending QT isn't sufficient for altcoin rallies; QE actively expands money supply, benefiting riskier assets like altcoins.

Altcoins Need Liquidity

• Ted stated the altcoin market requires liquidity through either the Fed starting QE or the Treasury releasing TGA liquidity.
• The likelihood of QE is low, and the TGA option depends on resolving the US government shutdown that began on October 1, 2025.
• Ted anticipates potential underperformance in the crypto market for some time.

BTC, ETH, and other altcoins may be affected by these developments.