Quantitative Tightening (QT)

A monetary policy where central banks reduce their balance sheets or raise rates to decrease liquidity.

Type:

macroeconomics

basic

QT withdraws liquidity, often pressuring risk assets. Crypto markets may see lower leverage and volumes during sustained QT phases.

Example 1.1

"During QT, higher rates and tighter conditions can reduce speculative flows into crypto."

Inflation is the sustained increase in the general price level, often caused by money supply growth outpacing real output, reducing purchasing power.

The predefined timeline and rate at which new coins are minted or released into circulation.

A hard cap is the maximum number of coins or tokens that will ever be issued by a cryptocurrency, enforced by protocol rules.

The predetermined total number of a cryptocurrency that will ever exist, enforced by the protocol's rules.

The total value of all circulating units of a particular cryptocurrency.

All terms and definitions may update as the Cryptionary improves.