Viewpoint: The Fed's slowdown in balance sheet reduction may increase liquidity, which is good for risky assets such as cryptocurrencies

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According to ChainCatcher, after the Federal Reserve announced a slowdown in quantitative tightening, Bitcoin rebounded from below $83,000 and briefly broke through $88,000. Shubh Varma, CEO of crypto research platform Hyblock Capital, pointed out that the slowdown in quantitative tightening may enhance liquidity, which is beneficial to risky assets such as cryptocurrencies. However, concerns about Trump's uncertain tariff policies have been suppressing the stock market and cryptocurrencies. Some analysts believe that from a technical perspective, BTC may need to explore down to $70,000 before restarting its upward momentum. Additionally, the Federal Reserve Watch Tool from the Chicago Mercantile Exchange shows that federal funds futures prices reflect an 89.1% possibility of at least two interest rate cuts this year.

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