The Federal Reserve's balance sheet expansion is back on track—and markets are starting to notice. Here's what traders and investors need to know about why this shift could ripple through Bitcoin, the broader crypto ecosystem, and equities.

When central banks expand their balance sheets, liquidity typically flows into risk assets. That's historically been good news for Bitcoin and altcoins. The mechanism is straightforward: more money in the system seeks returns, and speculative assets like crypto tend to catch bids during these periods.

But it's not automatic. Timing, narrative, and market sentiment all matter. Bitcoin has already priced in some macro expectations, so the real question is whether this reversal gains momentum or stalls. Crypto traders are watching Fed communications closely—any hint of sustained QE could reignite the rally.

Stocks face similar dynamics, though with different risk profiles. Equities benefit from lower real rates, but they're also more sensitive to earnings and growth fears. Crypto, by contrast, tends to thrive in environments of expanding monetary supply, regardless of recession concerns.

The takeaway: Keep tabs on Fed data, balance sheet trends, and rate expectations. These macro tailwinds could define the next leg of the market cycle.