The post Federal Reserve Continues Balance Sheet Reduction Amid Policy Deliberations appeared on BitcoinEthereumNews.com. Key Points: Vice Chair Jefferson emphasizes Fed’s ongoing balance sheet reduction amid policy debates. Impacts crypto markets, affecting BTC and ETH volatility. Continued quantitative tightening may decrease market liquidity. Federal Reserve Vice Chair Philip N. Jefferson emphasized the Fed’s readiness to utilize all available tools to shrink its balance sheet, addressing differences in member opinions, as disclosed on September 30. This ongoing quantitative tightening could heighten volatility in crypto markets, impacting liquidity and sparking fluctuations in key cryptocurrencies like Bitcoin and Ethereum. Crypto Market Trends Amid Federal Reserve’s QT Policies Market reactions from prominent crypto figures have been limited, with the broader crypto community cautious about liquidity-related risk. Notably, on-chain data suggest notable declines in DeFi Total Value Locked (TVL) and shifts in ETH staking volumes, reflecting adjustments to the tightening liquidity environment typically associated with these Federal Reserve actions. The implications of this continued balance sheet reduction are significant. Quantitative tightening reduces liquidity available to financial markets, which can unsettle asset classes globally, including cryptocurrencies. Vice Chair Jefferson noted, “Our commitment to the policy tools at our disposal is unwavering, as we navigate the complexities of the current economic landscape.” With less liquidity, experts often expect increased volatility in risk assets like BTC and ETH. Market participants closely watch these actions, driven by the Fed’s ability to recalibrate liquidity across financial landscapes. While no direct impact on interest rates was noted, the market remains vigilant due to potential downstream effects on lending rates and other financial mechanisms. According to CoinMarketCap, Bitcoin’s price stood at $112,884.27 as of September 30, 2025. Its market cap was reported at $2.25 trillion with a market dominance of 58.10%. The 24-hour trading volume showed a 36.85% change, recording $63.73 billion in transactions. Price movements for BTC noted a 0.80% increase over 24 hours but… The post Federal Reserve Continues Balance Sheet Reduction Amid Policy Deliberations appeared on BitcoinEthereumNews.com. Key Points: Vice Chair Jefferson emphasizes Fed’s ongoing balance sheet reduction amid policy debates. Impacts crypto markets, affecting BTC and ETH volatility. Continued quantitative tightening may decrease market liquidity. Federal Reserve Vice Chair Philip N. Jefferson emphasized the Fed’s readiness to utilize all available tools to shrink its balance sheet, addressing differences in member opinions, as disclosed on September 30. This ongoing quantitative tightening could heighten volatility in crypto markets, impacting liquidity and sparking fluctuations in key cryptocurrencies like Bitcoin and Ethereum. Crypto Market Trends Amid Federal Reserve’s QT Policies Market reactions from prominent crypto figures have been limited, with the broader crypto community cautious about liquidity-related risk. Notably, on-chain data suggest notable declines in DeFi Total Value Locked (TVL) and shifts in ETH staking volumes, reflecting adjustments to the tightening liquidity environment typically associated with these Federal Reserve actions. The implications of this continued balance sheet reduction are significant. Quantitative tightening reduces liquidity available to financial markets, which can unsettle asset classes globally, including cryptocurrencies. Vice Chair Jefferson noted, “Our commitment to the policy tools at our disposal is unwavering, as we navigate the complexities of the current economic landscape.” With less liquidity, experts often expect increased volatility in risk assets like BTC and ETH. Market participants closely watch these actions, driven by the Fed’s ability to recalibrate liquidity across financial landscapes. While no direct impact on interest rates was noted, the market remains vigilant due to potential downstream effects on lending rates and other financial mechanisms. According to CoinMarketCap, Bitcoin’s price stood at $112,884.27 as of September 30, 2025. Its market cap was reported at $2.25 trillion with a market dominance of 58.10%. The 24-hour trading volume showed a 36.85% change, recording $63.73 billion in transactions. Price movements for BTC noted a 0.80% increase over 24 hours but…