#SECETFApproval In recent years, central banks have turned to different tools to manage the economy. One of these tools is *Quantitative Tightening (QT)* — the opposite of Quantitative Easing (QE).

While QE adds money into the system to boost growth, *QT pulls money out of the financial system by reducing the central bank’s balance sheet*. This is to control inflation and bring monetary policy back to normal after years of stimulus.

*Here’s what QT does:*

-Raises interest rates, making borrowing more expensive.

-Slows down growth in the economy and markets.

-Reduces liquidity, which can lead to volatility in stocks and even crypto.

📉 With less money circulating, investors may become more cautious — and this can shift how markets behave, including crypto markets.

*Learn more about QT and why it matters for your portfolio here:* https://s.binance.com/jr6lEJn6