The crypto market is absolutely in a fragile state right now. The rebound was already weaker than the U.S. stock market, and just now, one comment from Milan about the possibility of continuing QT in the future immediately crushed it again. But you’ve got to listen to the full context. Here’s the original transcript of Milan’s speech: https://www.federalreserve.gov/newsevents/speech/miran20251119a.htm. What he’s trying to say isn’t that the economy can’t handle balance sheet reduction, but that regulation can’t handle it. In other words, the economy is actually okay, but regulatory requirements have pushed reserve demand too high, forcing the Fed to pause QT. If regulatory reforms are completed in the future, then QT can continue. In the short term, his stance is actually bullish: market makers return to the Treasury market, Treasury liquidity improves, repo market risks decrease, and the chances of another 2019 repo crisis are reduced. In the long term, though, there’s definitely a bearish undertone: long-term QT resumes, long-term dollar liquidity tightens, and unlimited QE isn’t coming back. This will create long-term structural bearish pressure on risk assets (including BTC). But for a policy-flip-prone country like the U.S., what people care more about is the present. Long-term directions can reverse at any time, and the short term is what the market is really trading on. Today they talk about long-term QT, but tomorrow if Congress isn’t happy, the Treasury isn’t happy, or the market crashes, they can just change the script again. It’s just that the market, which only just found some footing, is too fragile right now to handle more hawkish talk.