Editor's PiCK
[Analysis] "Dollar Liquidity Reduction... Bitcoin Adjustment Phase"
Summary
- According to Matrixport, the reduction in dollar liquidity could act as a headwind for Bitcoin prices.
- Historical data indicates that liquidity fluctuations tend to precede Bitcoin prices by about 13 weeks.
- The adjustment of Bitcoin is expected to be temporary, and the long-term outlook remains positive.
Recently, there has been an analysis suggesting that the reduction in dollar liquidity could lead Bitcoin (BTC) into an adjustment phase.
The virtual asset analysis firm Matrixport stated on its official X account, "Global liquidity fluctuations may act as a headwind for Bitcoin," adding, "Historical data shows that liquidity changes tend to precede Bitcoin prices by about 13 weeks."
Matrixport emphasized the possibility of a Bitcoin adjustment. Matrixport noted, "After Trump's re-election, the US dollar strengthened, reducing dollar liquidity," and "This suggests that Bitcoin may enter an adjustment phase in the short term." It further added, "(However) such an adjustment is expected to be temporary," because "the long-term outlook for Bitcoin remains positive."
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
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