The biggest factor driving the bull market:
#流动性
$BTC 's ETF through
1 Phase: Speculation on ETF expectations
October 2023 - January 2024
BTC range: 27000-48000
2 Phase: ETF rollout
BTC: 40000-73777
Net inflow: 17.6 billion USD
Institutional inflow: 55 billion USD
3 Phase: Other ETFs
Other regional ETFs: Hong Kong, Asia-Pacific
Other cryptocurrency ETFs: Ethereum, SOL

#美联储降息周期
1 Inflation -- 2%
CPI: 2.4% (decreased for five consecutive times)
PCE: 2.7% (previous value 2.6)
2 Employment
Non-farm: 25.4 (14.2)
Unemployment rate: 4.1% (4.2)
3 Harvesting globally
1. Exploding other countries' financial markets
2. Flooding the market for global harvesting

Analyzing the impossible triangle in various fields

Everyone knows that men have an impossible triangle, that is, handsome, rich and loyal, which are difficult to have at the same time; women also have an impossible triangle, beautiful, good personality and high IQ, which are also not easy to have at the same time.
In the field of investment, there is an impossible triangle, namely liquidity, personality and sex, and it is often difficult to achieve the perfect state of these three at the same time. There is also an impossible triangle in original work, which is a high salary, less work and close to home. This is almost an ideal pursuit of people in the workplace, but it is difficult to achieve in reality. There is also an impossible triangle in the profession, high position, power and light responsibility, which is also difficult to truly unify.
In particular, it is worth mentioning that our currency circle also has its impossible triangle, that is, early participation, low volatility and long-term holding. We all hope to get involved in the currency circle in the early stage, and enjoy the stability of low volatility, while holding for a long time to get rich returns, but this is really too difficult.
However, it is the existence of these impossible triangles that makes us more clearly aware of the characteristics and challenges of various fields. We cannot expect to have everything perfectly, but we can strive to pursue balance according to the actual situation.
We must understand that when facing these impossible triangles, we need to make choices and trade-offs. Only in this way can we find the right path for ourselves in our respective fields and move towards our goals.
Let us respond to the challenges brought to us by these impossible triangles with a more rational and pragmatic attitude! #三角债 #流动性

Regarding the importance of liquidity, this is also a topic that many friends talk about the most. Let's talk about it briefly here. Without water, people will die; without liquidity, the market will be finished. Why has the cryptocurrency risk market been sideways or even falling since April this year? Most tax revenues are received in April, which reduces the borrowing needs of the Ministry of Finance. We can observe this from the number of Treasury bills issued between April and June. Because the issuance of Treasury bills is in a "net reduction" state, liquidity in the system is withdrawn. Even if the government increases borrowing overall, the reduction in cash-like tools provided by the Treasury will withdraw liquidity from the market. Simply put, cash is still trapped on the balance sheet of the Federal Reserve Bank (i.e., the reverse repo market) and cannot drive the growth of financial asset prices. #流动性 #加密市场反弹 #美联储何时降息？

🌊 Illiquid Bitcoin Supply Reaches New High, Good for the Market or Potential Sell-off Risk?

Bitcoin’s “illiquid” supply has reached a new high, accounting for 74% of the circulating supply! What does this mean? Simply put, more and more Bitcoins are being hoarded, and these coins may not be traded on the market in the short term.

Analyst James Van Straten mentioned in the latest X post that this phenomenon reflects that Bitcoin’s liquidity is decreasing. The so-called “liquidity” refers to the flow of Bitcoin from one address to another. If the Bitcoin in an address rarely moves, then this part of the supply is considered “illiquid”.

This trend may be good news for the Bitcoin market. Why? Because it means that the number of Bitcoins available for trading in the market is decreasing, which may put upward pressure on the price of Bitcoin. Just like scarcity makes things more valuable, if there are fewer Bitcoins available for sale, those who want to buy may have to bid higher.

However, this may also mean a change in market sentiment. On the one hand, this shows investors’ confidence in Bitcoin and they are more willing to hold it for the long term rather than sell it. On the other hand, if market sentiment suddenly changes, these "illiquid" bitcoins may turn into selling pressure and cause a shock to the market.

In general, the increase in the illiquid supply of Bitcoin may indicate that the market is becoming more mature and investors are more inclined to hold for the long term. This may have a positive impact on the long-term price trend of Bitcoin, but it may also bring new market dynamics and challenges. It is also an important trend for cryptocurrency investors to pay attention to!

As of now, Bitcoin is trading at about $64,900, up more than 3% in the past week. Contract players should manage their positions well to avoid the risk of liquidation caused by huge fluctuations.

🗣️ What do you think of Bitcoin's liquidity? Is the higher the liquidity, the better, or is moderate illiquidity more conducive to market stability?

🛡️For contract players, what strategies do you have for position management and risk control in this market environment?

#比特币 #流动性 #市场趋势 #投资者信心 #加密货币市场