@bryptodegenerate
A short story. QE is coming. $BTC $BOOMER $ETH $SPX
1) What the chart shows
All major reserve-based liquidity ratios, Reserves/GDP, Reserves/Deposits, Reserves/FedAssets, Reserves/Debt collapsed sharply in recent months.
This only happens when the financial system is running critically low on reserves.
2) Why that matters
When reserve ratios fall this far, banks get tight, repo markets destabilize, and Treasury issuance strains the system.
This is the same setup that led to the 2019 repo crisis.
The Fed knows this and ended QT before anything broke.
3) What comes next
Fed officials already signaled:
- QT has ended
- Reserves must be rebuilt
- “Reserve management purchases” (Not-QE) are coming
- This is the pre-QE phase that historically turns liquidity upward.
4) Market implication
Every time reserve ratios bottom, 2012, 2019, 2020, 2023, risk assets rally as liquidity returns.
The collapse in ratios marks the liquidity floor, and QT ending is the confirmation.
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