Bloomberg Intelligence’s crypto market analyst Jamie Coutts is issuing an alert on Bitcoin, warning that BTC is becoming vulnerable to contracting global liquidity.
Coutts says on the social media platform X that Bitcoin hit the market “exit signal” around mid-July at a price of $29,500, a level that’s about 11% higher than current prices.
“Our trend model is still out of the market (negative) from $29,500.”
Bitcoin is trading at $26,187 at time of writing.
According to Coutts, Bitcoin is only likely to turn bullish when the level of global liquidity expands.
“Meanwhile the global liquidity contraction (money supply and central bank balance sheets) has slowed, but is still deeply negative. Until this reverses, Bitcoin is unlikely to go higher. Likely lower.”
On the liquidity levels in the US, Coutts says,
“And although the US Liquidity index is higher recently, it’s simply whipping around in a sideways range and therefore signals are basically noise, unless there is a meaningful push higher, which would likely only come with a policy change from the Federal Reserve. Not likely in the short term.”
The Bloomberg Intelligence analyst says that while the anticipated approval of a spot Bitcoin exchange-traded fund (ETF) in the US could potentially be a positive catalyst over the long term for crypto markets, demand for digital assets from institutional investors is unlikely to be significant until liquidity rises.
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