🏛️📉
#FedSignalsCarefulLiquidityTightening A Federal Reserve official has hinted that the balance sheet should be reduced — but slowly and carefully.
This reinforces a controlled approach rather than aggressive liquidity tightening.
🔍 Why this matters:
Reducing the balance sheet means pulling excess liquidity out of the system.
That often leads to:
• More restrictive financial conditions
• Increased pressure on risk-on assets
• Greater market reaction to macro news
📊 What it means for Bitcoin & Crypto:
Periods of tightening liquidity usually bring higher volatility.
BTC and other risk asset