A loose policy involves boosting liquidity, that is releasing more money into the financial system, through interest-rate cuts and other measures and spurs risk-taking, as observed in 18 months following the coronavirus crash of March 2020. A tighter monetary policy involves sucking liquidity out with interest-rate increases and other tools to tame inflation. It often disincentivizes risk-taking in financial markets, as seen last year.

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• Source: https://www.coindesk.com/markets/2023/11/17/here-are-3-charts-supporting-the-bull-case-for-bitcoin/?utm_medium=referral&utm_source=rss&utm_campaign=headlines