🚨 FED BALANCE SHEET RISES AGAIN! What does this mean for the markets? The Fed is turning the liquidity tap back on 😅 Since November 2025, we’ve observed an interesting development at the U.S. central bank. The Fed’s balance sheet has begun to expand once more. Notably, its holdings of short-term U.S. Treasury bills have increased by approximately $378 billion and now stand at around $573 billion. The Fed ended its quantitative tightening (QT) in December 2025 and subsequently introduced Reserve Management Purchases (RMP). Goal: Ensure adequate liquidity and bank reserves within the financial system. Is this already QE? No—at least not in the classical sense. While QE aims to deliberately ease financial conditions, the current measures are primarily focused on liquidity management. A growing Fed balance sheet and rising bank reserves can generally create favorable conditions for risk assets. This is also a development worth monitoring for Bitcoin and the broader crypto market. But caution: A larger Fed balance sheet doesn’t automatically mean more liquidity flowing directly into the crypto market. Not every balance sheet expansion is QE. But any shift in global liquidity conditions deserves our attention. 🤓