Why the Fed balance sheet is misleading regarding the next Bitcoin rally

The Federal Reserve's recent monetary policy adjustments, including a quarter-point rate hike and the maintenance of reserve-management tools, highlight that Bitcoin liquidity is influenced by how these policies impact financial markets rather than just the size of the Fed's balance sheet. While quantitative easing (QE) aims to stimulate the economy by removing duration risk, reserve-management purchases are specifically designed to maintain ample bank reserves and control short-term rates.