Quantitative Tightening (QT)
macroeconomics
A monetary policy where central banks reduce asset holdings or drain reserves to tighten financial liquidity.
1.basic
Quantitative tightening is the opposite of quantitative easing. A central bank lets assets mature without reinvesting, sells assets, or otherwise drains reserves from the financial system, reducing liquidity available to banks and markets.
2.market-context
QT can influence crypto indirectly through interest rates, leverage, risk appetite, and dollar liquidity. The effect is not mechanical: network fundamentals, regulation, exchange flows, and broader market conditions also matter.
Related terms
Inflation
→A sustained rise in the general price level, reducing a currency's purchasing power over time.
economics · macroeconomics
Emission Schedule
→An emission schedule defines when and how quickly new coins or tokens enter circulation.
economics · mining
Hard cap
→The maximum supply a cryptocurrency protocol permits, enforced by consensus rules or token contract logic.
economics · tokenomics
Maximum Supply
→The upper bound on asset issuance under a cryptocurrency's current protocol rules.
economics · tokenomics
Market Capitalization
→A sizing estimate calculated by multiplying an asset's reference price by its reported circulating supply.
finance · market
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