The Federal Reserve has reduced its balance sheet to $6.7 trillion, reflecting a more cautious approach amidst changes in financial markets.
Fed Balance Sheet Reduction
The Fed's balance sheet shrank by $170 billion in April, reaching a total of $6.7 trillion. This reduction follows a slowdown in the pace of quantitative tightening.
Adjustments to Quantitative Tightening Pace
The pace of quantitative tightening has been adjusted from $600 billion to $400 billion per month, indicating a more cautious approach towards economic stability and post-pandemic recovery.
Impact on Cryptocurrency Market
In the cryptocurrency market, Bitcoin's price stands at $104,035.16 with a market cap of $2.06 trillion. Despite recent shifts in Fed policy, Bitcoin maintains its position with stable demand.
The reduction in the Fed's balance sheet and changes in quantitative tightening policy point to a more cautious approach under the current economic realities. This may impact the cryptocurrency market.
