What will happen to the crypto markets when quantitative tightening takes full effect and the Federal Reserve shelves the money printer?
The Federal Reserve is starting the process of paring back its $9 trillion balance sheet that ballooned in recent years in a move called Quantitative Tightening (QT). Analysts from a crypto exchange and financial investment firm have conflicting opinions about whether QT, starting on June 1, will put an end to a decade of unprecedented growth across crypto markets.The worst part about this is that I would imagine ~80% of Americans have no idea what QUANTITIVE TIGHTENING is Why would we, this wasn’t taught in public school The SEC should worry about educating Americans on these terms as I believe that’s part of “PROTECTING” us https://t.co/Z8RwUNPJwF— WendyO.eth ✨ (@CryptoWendyO) May 31, 2022
Laypeople can consider QT the opposite of Quantitative Easing (QE) or money printing which the Fed has been engaged in since the start of the Covid-19 pandemic in 2020.
