Bitcoin

Arthur

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Global liquidity is increasing, potentially setting up Bitcoin for an upside potential.</li> 
 <li>The expected U.S. Fed rate cuts and T-bills issuance could further fuel Bitcoin’s price.</li> 
</ul>  
<p>Charles Edwards, the founder of Capriole Investments, recently highlighted the significant increase in global liquidity.</p> 
<p>Edwards noted that this surge had broken a four-year consolidation level, which could have implications for <a href="https://coineagle.com/price/bitcoin/">Bitcoin (BTC)</a>.</p> 
<h2 id="bitcoin-and-global-liquidity">Bitcoin and Global Liquidity</h2> 
<p>Bitcoin, the world’s largest cryptocurrency, is known for its correlation with liquidity. Any increase in global liquidity could potentially drive Bitcoin’s price up.</p> 
<p>Historically, Bitcoin’s cycle highs in 2017 and 2021 coincided with a rise in global liquidity, as pointed out by market analyst Francois Quinten.</p> 
<p>The recent increase in global liquidity is linked to the commencement of quantitative easing, with central banks, including those in Canada and the U.K, reducing their interest rates.</p> 
<h2 id="u-s-liquidity-and-bitcoin">U.S. Liquidity and Bitcoin</h2> 
<p>The U.S. is expected to start Federal rate cuts by September, which could further boost global liquidity and impact Bitcoin’s price.</p> 
<p>Traders are highly convinced of a September Fed rate cut, with interest rate traders pricing a nearly 60%-40% Fed rate cut for 25 and 50 basis points, respectively.</p> 
<p>In addition to the anticipated Fed rate cut, U.S. liquidity could be further boosted by the issuance of over $300 billion in T-bills by the U.S. Treasury Department by the end of the year.</p> 
<p>T-bills are used by the government to raise funds to cover fiscal deficits. Therefore, a positive net issuance of T-bills would increase U.S. liquidity.</p> 
<p>This increase in U.S. liquidity could propel Bitcoin’s price to $100,000, according to BitMEX founder Arthur Hayes.</p> 
<p>At the time of writing, Bitcoin was trading at $60.8k, with a short-term sell wall at $63k.</p>

Expert Foresees Bitcoin Surging to $100K Due to U.S Liquidity Situation

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CoinEagle.com

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