Is Bitcoin rallying on news that the FED will inject liquidity into the market in the coming days?
According to Talking Macro analysis, Bitcoin (BTC) price may continue to recover within the next 10 days as the US Federal Reserve (FED) injects more liquidity into the financial system.
Talking Macro points out a notable correlation between BTC price and FED liquidity injections since the end of March until now. Although the BTC price is currently down 3.2% compared to the opening price of the month, he believes that the situation could reverse before the month ends.
It can be seen that short-term BTC price bottoms also coincide with times when the FED's liquidity injections slow down. The opposite will happen when BTC price hits a short-term peak. Bitcoin's ATH price of $73,800 in mid-March was also accompanied by a surge in FED liquidity injections into the market.
In addition to the above event, a few other factors could boost the crypto market in the short term, such as the SEC ending its investigation into Ethereum and Consensys.
This helps alleviate concerns about the SEC classifying ETH as a security, and increases the likelihood that the SEC will soon allow the Spot Ethereum ETF to be officially traded!
