- Reputed crypto leader remains bullish.
- Cites global liquidity as most dominant macro factor.
- The price of BTC could surge once again fr a new ATH.
The crypto market grows ever more bearish as the price of BTC and ETH fall to lower prices, and analysts expect a new bottom for BTC or a much greater price dip. Despite the falling crypto prices and bearish sentiments, one reputed crypto leader remains bullish. He goes on to cite global liquidity as the single most dominant macro factor and breaks down why this is leads his to expect a bullish reversal.
Reputed Crypto Leader Remains Bullish
The analyst addresses the community by highlighting the present market sentiment, which is high in FUD, frustration, and disappointment caused by falling crypto market prices. Then he says that this frustration should be turned to patience as ‘the Road to Valhalla’ is getting very close. He says that if global liquidity is the single most dominant macro factor then we must focus on that.
Next, he reminds the crown that the only game in town is rolling $10 trillion in debt, meaning everything else is a side show. Declaring that the game will go on for 12 months, he then focuses on how the government shutdown changed things, starting with a sharp tightening of liquidity as the TGA builds up with nowhere to spend it. This is not offset by the ability to drain the Reverse Repo (it is drained), and QT drains it further.
This is hitting markets and, in particular, crypto, which is the most liquidity driven. TradFi asset managers have had one of their worst years of performance vs the benchmark, and are now having to chase markets, allowing tech to be more stable than crypto. He says that while 401K flows help, if this liquidity drain keeps going longer, stocks will get hit hard as well. However, a soon as the government shutdown ends, the Treasury will have to spend $250 billion to $350 billion in a couple of months.
Global Liquidity Could Turn Market Bullish
With the announcement that QT is ending ending and the balance sheet technically expands. The Dollar will likely begin to weaken again as liquidity begins to flow. Tariff negotiations will have largely been completed, removing uncertainty. In addition, the CLARITY Act will get passed, giving the crypto regulations it so desperately needs for large-scale adoption by banks, asset managers and businesses overall.
Also, the Big Beautiful Bill will kick and the entire system will be geared toward a strong economy and strong market in 2026 for these elections. China will continue to expand its balance sheet, Japan will work to strengthen the Yen, and also fiscally stimulate, the ISM will rise as rates fall and tariff uncertainty drops away. He concludes by encouraging traders to wait out the volatility and buy dips where they can.
