TechFlame reports that as the market widely focuses on the Federal Reserve's interest rate decision, traders have already begun to pay attention to whether the Fed will expand its $6.5 trillion balance sheet. Michael Kelly, Global Head of Multi-Asset at PineBridge Investments, stated that the market is watching whether the Fed will keep its balance sheet unchanged or begin to expand it. Strategists at Bank of America predict that the Fed will announce this week a plan to expand its balance sheet by $45 billion per month starting from January 2026. This includes purchasing at least $20 billion monthly to achieve natural growth of the balance sheet and an additional $25 billion monthly to reverse excessive depletion of reserves. This action is expected to continue at least until the first half of 2026. Roger Hallam, Global Head of Rates at Vanguard’s Fixed Income Group, added that in the long term, due to the expanding demand for reserves in the economy, the Fed will naturally begin purchasing short-term Treasury bonds next year. Cathie Wood previously mentioned the easing of the Fed’s liquidity conditions and reiterated Ark Invest’s long-term forecast that Bitcoin could reach $1.5 million in the future.