💵 The cryptocurrency market is facing a liquidity problem
⚡️ The Federal Reserve’s asset reduction could negatively impact risk assets. Currently, the regulator is cutting its mortgage-backed securities portfolio by $35 billion monthly, and the Fed’s balance sheet has already decreased to $7.14 trillion, down from $9 trillion at the start of 2022.
➡️ Another reverse REPO program will begin this week and run until September 30. Analysts suggest that the liquidity shortage could affect the cryptocurrency market, particularly ETH and its exchange-traded funds.
➡️ Although ETH has broken out of its downward trend channel and is trading around $2330, if ETH falls below $2300, the liquidity shortage could lead to a further decline in its price.
