Fed May Shift Policy Paradigm Toward Quantitative Tightening, Posing Liquidity Test for Bitcoin

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According to He Jie, a former senior economist at the Federal Reserve, speaking on Huobi's livestream on June 25, the incoming Fed chair may shift monetary policy toward quantitative tightening (QT), which would reduce market liquidity. He Jie noted that QT could pressure risk assets including Bitcoin and stocks. However, he emphasized that long-term integration between Bitcoin and traditional finance continues to accelerate through channels such as Bitcoin ETFs and tokenized assets, potentially creating broader funding sources for digital assets despite near-term headwinds.
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