🏛️📉 #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 support levels.
However — “cautiously” is the key word.
This suggests the Fed wants stability, not shock therapy.
💡 Traders should watch:
• Bond yields
• Dollar strength (DXY)
• BTC support zones
Macro policy is shaping market direction more than ever.
How are you positioning in a tightening environment? 👇
#WalshSaysToCautiouslyShrinkBalanceSheet #FederalReserve #MacroUpdate #BTC