Fed balance sheet rises by $8.4 billion in a week as reserve balances jump $132 billion

The U.S. Federal Reserve’s July 9 H.4.1 report showed a weekly increase in central bank balance sheet-related metrics, with Reserve Bank credit rising to $6.685 trillion, up $8.39 billion from the prior week. Reserve balances also posted a sharp one-week gain of $132 billion, reaching $3.099 trillion. Techub, citing CryptoBriefing, said the Fed had reduced its balance sheet through quantitative tightening from 2022 to 2025, with the total now steady at about $6.7 trillion. The report also pointed to historical market data linking earlier balance sheet expansion to a major move in Bitcoin. During the Fed’s 2020-2021 expansion phase, Bitcoin climbed from below $10,000 to nearly $69,000. In contrast, the QT cycle that began in mid-2022 coincided with a decline of more than 75% in Bitcoin’s value. The figures add fresh macro context for crypto market participants tracking liquidity conditions and central bank balance sheet shifts.