đ” The cryptocurrency market is facing a liquidity problem
âĄïž The Federal Reserveâs asset reduction could negatively impact risk assets. Currently, the regulator is cutting its mortgage-backed securities portfolio by $35 billion monthly, and the Fedâs balance sheet has already decreased to $7.14 trillion, down from $9 trillion at the start of 2022.
âĄïž 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.
âĄïž 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.
