Quantitative Tightening (QT)
macroeconomics
A monetary policy where central banks reduce asset holdings or drain reserves to tighten financial liquidity.
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.
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