Bitcoin Faces Near-Term Pressure as Global Liquidity Tightens, Upside Seen if Conditions Improve
Summary
- CoinDesk reported that Bitcoin could face short-term downside pressure as global liquidity contracts.
- Russell Thompson, Hilbert Group’s CIO, said global liquidity could shrink by as much as 25%%, making it difficult for the rally in risk assets to continue.
- He said that if liquidity conditions improve, Bitcoin could resume its rally by year-end and potentially set a new all-time high in 2027.
Forecast Trend Report by Period
Bitcoin is facing near-term downside pressure as global liquidity tightens, though its medium- to long-term bullish outlook remains intact.
CoinDesk reported on April 20 that Russell Thompson, chief investment officer at Hilbert Group, expects global liquidity to contract by as much as 25%.
Even if geopolitical risks ease, risk-asset gains, including Bitcoin's, will be hard to sustain without policy support, Thompson said.
While some parts of the financial system are showing signs of more stable liquidity, broader tightening conditions are likely to intensify.
Thompson nonetheless maintained a positive medium- to long-term view on Bitcoin. He said improving liquidity conditions could help the cryptocurrency resume its advance by year-end and potentially reach a fresh all-time high in 2027.
Markets are watching near-term liquidity conditions and the policy path as the key drivers of price moves.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
