As Fed Shrinks Balance Sheet by Trillions, Crypto Markets Hold Steady
Amid a historic reduction of the Federal Reserve's balance sheet—down $2.37 trillion to its lowest level since 2020—cryptocurrency markets are showing resilience. While the Fed tightens financial conditions by shrinking its assets to 21.6% of GDP, major cryptocurrencies like BTC, BCH, and XRP have posted gains. This divergence is being closely watched by investors, who are assessing whether digital assets can decouple from traditional central bank liquidity cycles, even during the most aggressive QT in Fed history.
