The U.S. Federal Reserve has concluded its quantitative tightening (QT) program as of December 1, 2025, marking the end of a three-year effort to reduce central bank assets. The Fed's balance sheet now stands at $6.53 trillion, its lowest since April 2020, after a reduction of $2.43 trillion. This move reverses more than half of the $4.81 trillion added during the pandemic's quantitative easing phase. Analysts believe the end of QT could enhance financial conditions and spur institutional interest in Bitcoin, particularly through exchange-traded funds (ETFs). The decision aligns with expectations of potential interest rate cuts and a shift towards a less contractionary monetary policy by the central bank.