Quantitative Tightening (QT)
A monetary policy where central banks reduce their balance sheets or raise rates to decrease liquidity.
QT withdraws liquidity, often pressuring risk assets. Crypto markets may see lower leverage and volumes during sustained QT phases.
"During QT, higher rates and tighter conditions can reduce speculative flows into crypto."
Related Terms
Inflation
→Inflation is the sustained increase in the general price level, often caused by money supply growth outpacing real output, reducing purchasing power.
Emission Schedule
→The predefined timeline and rate at which new coins are minted or released into circulation.
Hard cap
→A hard cap is the maximum number of coins or tokens that will ever be issued by a cryptocurrency, enforced by protocol rules.
Maximum Supply
→The predetermined total number of a cryptocurrency that will ever exist, enforced by the protocol's rules.
Market Cap
→The total value of all circulating units of a particular cryptocurrency.
All terms and definitions may update as the Cryptionary improves.
