Viewpoint: The Federal Reserve's reduction in balance sheet, slowdown or increase in liquidity, is beneficial for risky assets such as cryptocurrencies

According to a report by Golden Finance, after the Federal Reserve announced a slowdown in balance sheet tightening, Bitcoin rebounded below $83000 and briefly broke through $88000. Shubh Varma, CEO of crypto research platform Hyblock Capital, pointed out that the slowdown in balance sheet tightening may increase liquidity, which is beneficial for risk assets such as cryptocurrencies. However, concerns about Trump's tariff policy uncertainty have been suppressing the stock market and cryptocurrencies. Some analysts believe that BTC may drop below $70000 on a technical level before resuming its upward trend. According to the Chicago Mercantile Exchange's Federal Reserve Watch tool, the probability of at least two interest rate cuts by the Federal Reserve this year reflected in federal funds futures prices is 89.1%.