A major investment bank just dropped an interesting forecast about the Federal Reserve's balance sheet moves. According to their latest analysis, we might see the central bank snapping up around $40 billion worth of Treasury bills monthly as early as 2026.

Why does this matter? Well, it's all about liquidity management. When the Fed buys T-bills, they're essentially injecting cash into the financial system. This could signal a shift in their approach to balance sheet operations after the quantitative tightening phase.

The timing is noteworthy too. Early 2026 would coincide with potential adjustments in monetary policy as inflation dynamics continue evolving. For crypto markets and risk assets generally, increased Fed purchases typically mean more dollars sloshing around the system—though the actual impact depends on broader economic conditions.

This kind of technical operation doesn't grab headlines like rate cuts do, but it matters for market plumbing. Treasury bill purchases can smooth out short-term funding markets and influence overall financial conditions.

Keep an eye on how this plays out. Balance sheet policies often have sneaky ways of affecting asset prices across the board, from bonds to digital assets.