CRYPTO & THE QUANTITATIVE TIGHTENING HALT: LIQUIDITY IS FLOWING BACK

Core Focus: End of Quantitative Tightening (QT) and its positive impact on market liquidity.

Federal Reserve Chairman Jerome Powell has delivered a major positive signal for risk assets, including the crypto market, by confirming the imminent end of Quantitative Tightening (QT). The FED plans to cease shrinking its balance sheet after December, instead reinvesting proceeds from maturing mortgage-backed securities into U.S. Treasury bonds. This pivot marks a significant relaxation of monetary policy. By halting the withdrawal of liquidity from the financial system, the FED is creating a more accommodative monetary environment. This influx of stability and available capital typically encourages investment in risk assets, setting a favorable stage for renewed growth and upward momentum in the cryptocurrency market.