Bloomberg Intelligence’s crypto market analyst Jamie Coutts issues a warning on Bitcoin, warning that BTC is becoming vulnerable to declining global liquidity.
Coutts say on the social media platform
“Our trend model is still out of the market (negative) from $29,500.”
Bitcoin is trading at $26,187 at the time of writing.
According to According to Coutts, Bitcoin is only likely to turn bullish as the level of global liquidity increases.
“Meanwhile, the global contraction in liquidity (money supply and central bank balance sheets) has eased, but is still deeply negative. Until this reverses, Bitcoin is unlikely to move higher. Probably lower.”
On liquidity levels in the US, Coutts said say,
“And while the US liquidity index has been higher lately, it is simply spinning sideways and therefore the signals are essentially noise unless there is a meaningful rise, which would likely only come with a policy change from the Federal Reserve. Probably not in the short term.”
The Bloomberg Intelligence Analyst say that while the expected approval of a spot Bitcoin exchange-traded fund (ETF) in the US could potentially be a positive catalyst for crypto markets in the long term, demand for digital assets from institutional investors is unlikely to be strong until liquidity increases .
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