Bitcoin is on the verge of a potential price increase in the next 10 days, as United States macroeconomic conditions appear to be aligning in its favor, as per financial expert Tedtalksmacro. Tedtalksmacro closely monitors the relationship between BTC price movements and the liquidity of the U.S. Federal Reserve.
Despite experiencing a slight 3.2% decline in June, Bitcoin could see a reversal of fortune soon. Tedtalksmacro’s analysis has revealed a strong correlation between Fed liquidity and BTC/USD, which has remained consistent over several months. He expressed his amazement at the close connection between Bitcoin and Fed Liquidity in a recent commentary.
Using data from his own macroeconomic analysis tool, Talking Macro, Tedtalksmacro illustrated how BTC price peaks and valleys coincide with spikes and drops in Fed liquidity. Even Bitcoin’s record-setting high of $73,800 in mid-March was accompanied by a surge in liquidity.
Explaining the calculation method for liquidity, Tedtalksmacro stated that it is based on a combination of Fed assets, repo markets, and treasury data. Additionally, he highlighted a recent decrease in inflows to U.S. spot Bitcoin ETFs, following a period of high activity in early June.
Looking ahead to the third quarter, there is growing anticipation for a new wave of institutional interest in Bitcoin, especially as U.S. wirehouses are expected to gain access to spot ETF products. This development is seen as a significant milestone in Bitcoin’s evolution into a mainstream institutional investment. Cathie Wood, CEO of ARK Invest, a prominent spot ETF provider, emphasized the importance of this event in a recent interview.
It is important to note that this article does not offer investment advice. All investment decisions involve risks, and readers are advised to conduct their own research before making any financial decisions.