Coinbase: The Federal Reserve's shift from reducing its balance sheet to net injections may provide support for the crypto market

CoinVoice has learned that Coinbase Institutional posted an analysis on the X platform stating that the Federal Reserve announced a 25 basis point rate cut this week, which was in line with expectations. However, it plans to conduct U.S. Treasury reserve management purchases (RMP) within the next 30 days, which can be considered a positive development. This liquidity injection came earlier than expected, and reserve growth may continue until April 2026. Coinbase Institutional believes that the Fed shifting from shrinking its balance sheet to net injections is viewed as a “mild easing” or “implicit easing,” which could support the cryptocurrency market. Combined with the RMP and federal funds futures indicating two rate cuts (50 basis points) in the first nine months of 2026, suggesting that market hawkish sentiment may be lower than expected.