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#WalshSaysToCautiouslyShrinkBalanceSheet Federal Reserve Governor Waller signaled that the Fed should “cautiously shrink the balance sheet,” reinforcing a careful approach to tightening liquidity.
🔎 What does this mean?
Shrinking the balance sheet = reducing excess liquidity in the financial system.
Less liquidity often means:
• Tighter financial conditions
• Pressure on risk assets
• Higher market sensitivity to macro data
📊 Impact on Bitcoin & Crypto:
When liquidity tightens, volatility increases.
BTC and other risk assets may experience short-term pressure, especially near key suppo