The latest Fed action delivered a 25-basis-point rate cut as expected, with policymakers signalling a return to T-bills purchases, resuming a $40 billion program in short-term Treasuries. This dovish tilt reinforces system liquidity and provides a concrete liquidity backdrop for markets.

While the liquidity boost is supportive, counsel remains cautious: it is premature to claim a restart of the bull market via QE. With year-end liquidity typically thin, risk assets tend to digest the news gradually.

Crypto dynamics show a cautious tone. Market data indicate end-of-December positioning, with more than half of options exposure concentrated near expiration. For Bitcoin, a notable pain point sits near $100,000, and for Ethereum, near $3,200.

Implied volatility is trending lower into year-end, reflecting softer near-term momentum. The prevailing sentiment is modestly bearish, though the door remains open to a reversal should unexpected positive developments emerge.