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Thread: Understanding Quantitative Tightening (QT) & Its Impact on Crypto Markets 𧡠1 π What is Quantitative Tightening (QT)? QT is a central bank policy to reduce money supply in the economy. Think of it as reversing the money printer π¨οΈβ‘οΈπ₯. Goal? Control inflation & stabilize markets. Less cash = less liquidity. And liquidity = rocket fuel for markets π. 2 πΈ Why does QT matter? Less money circulating = fewer funds to pump asset prices. Markets thrive on liquidity. When QT kicks in, that liquidity dries up. No cash? No bull runs. Simple. 3 π Recent QT news:The Fed just announced theyβll start easing QT in April. Translation: The money faucet isnβt fully on yet, but the drip π§ is starting. Gradual liquidity incoming. 4 ποΈ When does QT end? The market wants QT GONE for a full bull run π. Next Fed meeting in May could be the moment. Keep eyes peeled π.
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