US Equity Market's $75 Trillion Threat—Crypto Stands to Gain
By John Nada·Jul 9, 2026·2 min read
Amid a potential $75T equity threat, analysts say crypto could gain from Fed intervention in liquidity and risk shifts.
“Once the Fed steps in, rate cuts, balance-sheet expansion, even targeted ETF purchases, crypto has historically entered a medium-to-long-term uptrend," said Alvin Kan, Bitget Wallet's COO, to Cointelegraph. With the U.S. equity market swelling 68% over the past five years and adding roughly $6 trillion this year alone, its mammoth size isn't lost on market watchers. The potential for a major correction has them buzzing about how crypto could benefit if the Fed steps in as a backstop.
Eric Balchunas of Bloomberg suggests the Fed could break precedent and buy equity ETFs to buoy the stock market during a downturn. In 2020, faced with a pandemic-induced credit freeze, the Fed purchased $8.7 billion in corporate bond ETFs. This type of intervention isn't foreign to nations like China and Japan, where central banks use indirect equity ETF purchases to boost liquidity.
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“If a severe bear market hits, the ramifications extend beyond eroding investor wealth,” warned Tim Sun of HashKey Group. The stakes are high: consumer spending, pension stability, corporate credit expansion, and tax revenues could all feel the pressure. Yet, Sun notes that even if cryptos don't get direct backing, their pricing remains closely tied to US dollar liquidity and market sentiment.
Interestingly, Jeff Mei from BTSE points out that, with inflation still high, the Fed might hesitate to simply print more money. "However, there are other tools they can deploy," he noted. The political impetus to avoid a prolonged bear market is strong, with 58% of Americans owning stocks, according to Balchunas. It's not merely an economic issue; it's a household one.
Crypto's tether to global liquidity trends could see it benefit if the Fed's actions signal a return to risk-on environments. Balchunas believes this structural backstop supports a more resilient macro backdrop, which spells bullish potential for crypto as a growth asset. Even without direct intervention, the crypto market could ride the waves of increased liquidity and revived risk appetite.