Fed's QT to End Soon, But Powell Warns Congress Threatens Rate Control Stability – Crypto at Risk?
Fed's QT to End Soon, But Powell Warns Congress Threatens Rate Control Stability – Crypto at Risk?
Federal Reserve Chair Jerome Powell announced the central bank's three-year campaign to shrink its $6.6 trillion balance sheet could end within months while warning Congress against eliminating the Fed's ability to pay interest on reserves, as gold hit record $4,200 up 59% year-to-date.
Article Summary
**Fed's Quantitative Tightening End Signals Major Crypto Market Shift as Gold Soars 59%** Federal Reserve Chair Jerome Powell's announcement that the central bank's three-year quantitative tightening (QT) program affecting its massive $6.6 trillion balance sheet could conclude within months has sent ripples through cryptocurrency markets. As traditional assets like gold surge to record $4,200 levels with impressive 59% year-to-date gains, Bitcoin and altcoin investors are closely monitoring potential policy shifts that could impact digital asset valuations. Powell's warning to Congress about threats to the Fed's interest rate control mechanisms introduces additional uncertainty for DeFi protocols and blockchain-based financial instruments. Cryptocurrency traders are analyzing how the potential end of balance sheet reduction might affect liquidity conditions and risk appetite for digital assets. The convergence of monetary policy changes and record precious metal performance suggests investors are seeking inflation hedges, potentially benefiting Bitcoin's store-of-value narrative. As quantitative tightening winds down, cryptocurrency markets may experience increased volatility as institutional investors reassess portfolio allocations between traditional safe havens and emerging digital assets amid evolving Federal Reserve policy frameworks.
