Bitcoin and the major altcoins are stable at the moment, but the sudden liquidation from the weekend of 8/5 has caused a major shakeup. Billions of leveraged positions have been liquidated, and despite the current stability, prices are technically under pressure.
Global liquidity is skyrocketing: will #MarketDownturn benefit? However, even with the risk of Bitcoin, Solan, #MarketDownturn and other #cryptocurrencies falling to multi-week support levels, one in ten of X analysts believe the market is ripe for recovery.
In his post, he explained that the US Federal Reserve, the central bank, plans to change its monetary policy in the coming weeks, which automatically means it will start printing money.
the crypto community expected the Federal Reserve to start cutting interest rates, which are currently at multi-year highs, but the decision to postpone this means that interest rates are still higher than expected.
the moment, the US central bank is likely to cut interest rates to 9% at the next FOMC meeting scheduled for May 5. Analysts also said the Fed will launch a Treasury bond buyback operation when it does. Thanks to this initiative, the government injects about $3,300 billion a month into the economy.
low interest rates and buyback programs significantly increase global liquidity. Historically, especially between 2020 and 2021, when governments around the world stepped in to fight the COVID-19 virus, global liquidity has increased dramatically.
At the same time, the price of bitcoin and other cryptocurrencies has risen to multi-year highs. In particular, investors switched to bitcoin, citing its rarity and the potential for the coin to retain value.
The global liquidity currently exceeds 106 trillion yen. And this figure continues to grow, which is positive for Bitcoin and liquid but deflation-prone digital assets.
But traders should be cautious. Bitcoin remains volatile, and it is impossible to predict exactly when the price will fall.
the nearest support is around 50,000, which corresponds to the number of rounds.
Read us at: Compass Investments
