Bitcoin recovery on edge amid Fed rate cut uncertainty & ‘liquidity squeeze’
The post Bitcoin recovery on edge amid Fed rate cut uncertainty & ‘liquidity squeeze’ appeared com. Key Takeaways Will BTC recover this week? It depends on the Jobs report. A weak report could improve the odds of a Fed rate cut, sentiment, and trigger a relief rally. But a strong labor could deepen the sell-off. What’s the analysts’ outlook on the same? Swissblock believes BTC could stabilize, while QCP Capital and Nansen analysts warned of a potential dip to $80k. Bitcoin [BTC] consolidated recent losses above $90k, after briefly slipping to $89. 2k on the 18th of November, ahead of the September Jobs report scheduled for the 20th of November. This will be the most crucial macro print of the week, having been delayed due to the U. S. government shutdown. It will influence expectations for a Fed rate cut and, by extension, the market sentiment in risk assets. At the time of writing, the market was pricing a nearly 50/50 scenario, either for a cautious rate pause or a 25 bps cut. For Singapore-based crypto trading firm, QCP Capital, the Jobs report will determine whether the market rebounds or accelerates the current sell-off. “Overall, conditions look more late-cycle than recessionary, but with fiscal constraints, uneven consumption, and liquidity thinning, the coming data will decide if TC’s drop is a shakeout or the start of a broader risk-off phase.” Is BTC’s drop below $90k inevitable? As mentioned by QCP Capital analysts, U. S. dollar liquidity has also thinned out since late October, a stance reiterated by Arthur Hayes, founder of BitMEX. Collectively, the deleveraging event on the 10th of October, the macro uncertainty, and the ‘liquidity squeeze’ have compounded market rout across risk assets, including.
