Federal Reserve’s Balance Sheet Shrinkage Continues Impacting Crypto Liquidity

The Federal Reserve’s balance sheet contraction continues, even after its quantitative tightening (QT) program ended in December 2023. This has a significant impact on cryptocurrency liquidity, potentially delaying market recovery for Bitcoin and Ethereum until 2026. Experts like Benjamin Cowen, CEO of Into The Cryptoverse, suggest the process could extend into early 2026. This prolonged QT period is creating financial constraints that are impacting investments in crypto assets such as Bitcoin and Ethereum. )