# MarketStability

#WalshSaysToCautiouslyShrinkBalanceSheet
As of today, Walsh’s comments about cautiously shrinking the balance sheet highlight a more measured tone emerging from policymakers after years of aggressive intervention. Rather than signaling abrupt tightening, this language suggests an awareness of how sensitive markets remain to liquidity changes and how easily confidence can be disrupted by policy missteps.
Balance sheet reduction is not just a technical adjustment; it directly affects liquidity across financial markets. When central banks shrink their balance sheets too quickly, risk assets ofte

#PartialGovernmentShutdownEnds
The partial U.S. government shutdown is officially over.
Markets — and crypto — are reacting not to the drama itself, but to what certainty brings.
Why It Matters for Crypto
1️⃣ Policy Back on Track
Regulatory initiatives can continue without pause
Treasury & SEC operations resume
Institutional engagement sees less legal uncertainty
2️⃣ Liquidity & Capital Flows
Shutdowns freeze certain federal payments, slowing capital
Ending the shutdown restores predictable liquidity cycles
Investors can refocus on macro & digital asset strategies
3️⃣ Market Psychology Reset