Matrixport has released its latest report highlighting how global liquidity trends could impact Bitcoin prices.
Matrixport: Global Liquidity Fluctuations Could Put Pressure on Bitcoin in the Short Term
Historical data shows that changes in global liquidity typically precede Bitcoin price movements by about 13 weeks.
Liquidity Tightening and Bitcoin’s Short-Term Outlook
The report notes that the strengthening of the US dollar following the re-election of Donald Trump has triggered a tightening of global dollar-denominated liquidity. This development suggests that Bitcoin may enter a consolidation phase in the near term.
Despite this potential short-term lull, Matrixport emphasized that the overall outlook for risky assets, especially Bitcoin, remains positive in the long term.
Matrixport urged investors to exercise caution in light of a weaker liquidity environment. Historical trends suggest that global liquidity changes are a reliable market indicator and signal potential risks for investors navigating the current environment.
Matrixport described the expected consolidation as a temporary phenomenon, while noting that Bitcoin’s long-term potential is still intact.
However, investors are advised to remain vigilant as global liquidity dynamics could lead to additional market volatility.
This report highlights the importance of monitoring macroeconomic factors such as liquidity and currency strength as key influencers of Bitcoin’s price trajectory.
*This is not investment advice.
