Tightening monetary policy is choking crypto liquidity
The Fed's continued high interest rates and ongoing withdrawal of USD liquidity are exerting clear pressure on risk assets, including crypto. ETF inflows have stalled, leverage is being reduced, causing the market to enter a phase of strong volatility but lacking sustained buying pressure. Crypto is no longer moving solely based on speculative narratives, but increasingly reacting to macroeconomic data such as interest rates, bond yields, and the strength of the US dollar.
BTCUSDT
Perp
69,121.1
+2.48%