Trump’s $200B Liquidity Push Could Boost Crypto Markets

Trump Signals Fresh Liquidity for Markets

President Donald Trump has ordered US government agencies to purchase $200 billion worth of mortgage-backed securities, a move that immediately caught the attention of financial and crypto markets.

While not a formal Federal Reserve QE program, the decision effectively adds liquidity to the financial system, lowers mortgage rates, and eases overall financial conditions — a setup that has historically favored crypto markets.

Why This Matters for Crypto

Lower mortgage rates reduce monthly payments for households, leaving more disposable income in the system. Over time, increased liquidity tends to flow first into equities and then into higher-risk assets like $Bitcoin.

Importantly, this $200B was previously idle capital. Deploying it instead of tightening financial conditions shifts the macro environment toward soft easing, which has often acted as a tailwind for crypto in past cycles.

Liquidity First, Crypto Follows

Historically, equities respond first to improving liquidity, while crypto markets follow with a delay as risk appetite expands. If this move is paired with weaker macro data or rising expectations of rate cuts, it could further support Bitcoin’s medium-term outlook.

For now, traders see this as a macro-positive signal, not an immediate catalyst — but one that could influence crypto market direction as 2026 unfolds.