The Fed Stops Balance Sheet Reduction and Shifts to Treasuries—Can the Crypto Market Take a Breather?

[Crypto World] The Fed is changing its playbook—not reducing its balance sheet anymore, but instead redirecting the money from maturing mortgage-backed securities directly into Treasuries. The goal is clear: to stabilize the scale of Treasury holdings. According to Powell, current reserve levels are sufficient to maintain market liquidity, and this adjustment is meant to “lock in” stability for the system.

The crypto market, however, is far from calm. The recent trend has already been weak, and investors are closely watching this policy shift—after all, liquidity conditions directly impact risk assets. The question is: Can this Fed “maneuver” help ease the current downturn? The market is still waiting and seeing, but at the very least, it has sent a signal—there won’t be any active liquidity tightening in the short term.