Raphael Polansky, Chief Growth Officer of BitMEX, recently stated that although the market is experiencing a rebound period, one of BitMEX’s internal macro indicators, RRP (Reverse Repo Rate), shows that liquidity is tightening this month. The RRP indicator has historically had an inverse relationship with Bitcoin performance, and when the RRP indicator rises, it is generally a bearish signal for Bitcoin and the cryptocurrency market.
So while the market rally brings short-term optimism, RRP’s warning points to reduced market liquidity that could curb further gains for the cryptocurrency. This trend deserves investors' close attention to avoid the risk of a potential market correction.
