Matrixport: Global liquidity tightening may lead to short-term consolidation of Bitcoin
According to research by Markus Thielen, an independent analyst at Matrixport, global liquidity fluctuations may exert short-term pressure on Bitcoin prices. Historical data shows that changes in liquidity usually precede Bitcoin price trends by about 13 weeks. With the strengthening of the dollar after Trump's re-election, global liquidity denominated in dollars began to tighten, which may imply that Bitcoin will enter a consolidation phase in the near future.
Nevertheless, from a long-term perspective, risky assets like Bitcoin still show positive potential. However, traders need to be more cautious under weaker liquidity conditions because global liquidity has been proven to be a reliable market indicator.
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