The moment of reckoning is near. The Federal Reserve’s balance sheet strategy, designed to shield markets from shocks, is coming to an end. The impact on global financial stability may be significant, particularly for asset classes such as cryptocurrencies like Bitcoin. This analysis explores the dynamics of how the Fed’s quantitative tightening (QT) will affect liquidity and identify Bitcoin’s potential role in a turbulent market. 2019-style funding spikes are likely to follow QT, pushing prices downwards. A similar scenario to 2023’s bank wobbles may also occur. The Federal Reserve is expected to taper QT in the coming months, aiming to avoid a repeat of these episodes. This shift will impact markets as investors reposition their portfolios. A key driver is Bitcoin’s unique position as pure liquidity beta. Unlike traditional assets, it offers 24/7 trading with no credit plumbing and instant global repricing. This makes it a potential refuge for investors during times of financial stress. The analysis explores various indicators that signal the impending shift and identifies potential triggers for market volatility. This includes SOFR turning positive while IORB remains steady and the rising demand for Standing Repo Facility (SRF) auctions, followed by gold’s rebalancing. The article emphasizes a need to focus on actions rather than mere pronouncements. The best strategy will be to build positions strategically based on sequence, not just speculation.