The Federal Reserve's balance sheet has started expanding again—the first uptick we've seen in four years. This shift carries significant implications across multiple asset classes.

Historically, when central bank liquidity increases, it tends to flow into risk assets. Bitcoin and broader crypto markets have historically benefited from such monetary expansion cycles. Beyond just cryptocurrencies, this balance sheet growth typically supports equity markets as well, creating what many traders call a "risk-on" environment.

The timing here matters. With Fed policy potentially shifting toward easier monetary conditions, investors are reassessing their allocations across Bitcoin, altcoins, and traditional equities. The interconnection between Fed balance sheet dynamics and market performance remains one of the most reliable macro-to-micro trading relationships to monitor.