💡 The Fed's balance sheet expanded by $24.4B this week—the biggest jump since the 2023 banking crisis hit. Three weeks running now, and we're watching total assets climb back to $6.58T, a level we haven't seen since October.
This matters. Balance sheet expansion signals liquidity returning to the system. When the Fed pumps money back in, assets that thrive in loose monetary conditions tend to catch a bid.
Historically, Bitcoin has shown sensitivity to Fed cycle shifts. Periods of expanding liquidity often correlate with risk-on appetite. Whether this current trend sustains will depend on inflation data and rate expectations ahead.
Keep an eye on these weekly moves—they're breadcrumbs for where capital might flow.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
8 Likes
Reward
8
5
Repost
Share
Comment
0/400
RektButStillHere
· 01-06 08:20
Damn, they're starting to loosen the controls again... Is this really happening this time?
View OriginalReply0
CommunityLurker
· 01-04 23:55
The fact that it has been growing for three consecutive weeks really seems like a different kind of signal. The crypto world should wake up.
View OriginalReply0
ZkSnarker
· 01-04 23:51
ngl the fed just speedrunning the 2023 playbook again... $24.4B in one week is actually wild when you think about it
Reply0
ETHmaxi_NoFilter
· 01-04 23:39
Uh, they're starting to pump again. Is this really happening, or are they just trying to harvest the little guys again?
💡 The Fed's balance sheet expanded by $24.4B this week—the biggest jump since the 2023 banking crisis hit. Three weeks running now, and we're watching total assets climb back to $6.58T, a level we haven't seen since October.
This matters. Balance sheet expansion signals liquidity returning to the system. When the Fed pumps money back in, assets that thrive in loose monetary conditions tend to catch a bid.
Historically, Bitcoin has shown sensitivity to Fed cycle shifts. Periods of expanding liquidity often correlate with risk-on appetite. Whether this current trend sustains will depend on inflation data and rate expectations ahead.
Keep an eye on these weekly moves—they're breadcrumbs for where capital might flow.