Matrixport has predicted a period of temporary consolidation for Bitcoin.
Bitcoin crashed to $95K from $102K since Tuesday.
The strengthening US dollar and global shift in liquidity is to be blamed.
Bitcoin’s price dropped 5.7% in the past 24 hours, falling to $95,000 after peaking at $102,000 earlier this week. Matrixport, a leading digital asset platform, predicts this marks the start of a consolidation phase for the cryptocurrency, driven by global liquidity tightening.
Matrixport highlighted that changes in global liquidity often act as leading indicators for Bitcoin price action, typically observed over 13-week cycles. The firm linked this trend to the re-election of Donald Trump and the strengthening US dollar, which has tightened dollar-denominated liquidity.
Read also: Bitcoin $120K Predictions Surge with Trump’s Inauguration
Matrixport stated that it anticipates this “consolidation to be temporary” because the broader sentiment surrounding risky assets like Bitcoin and equities, remains “constructive.” However, the firm has advised traders to maintain caution during periods of liquidity shifts because these indicators have “prove…
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