Bitcoin’s price has remained stable around $90,000 in the global crypto market, despite a noticeable decline in liquidity. Financial analysts have observed a significant decrease in investor participation, leading to slower trading activity. The market has fully priced in expectations of an interest rate cut by the U.S. Federal Reserve, impacting the global financial system. According to a QCP report, reduced investment involvement has resulted in minimal price fluctuations among cryptocurrencies. Meanwhile, predictions suggest any Federal Reserve rate cuts are likely to be mild and limited. Investors are closely monitoring guidance from central banks and statements from financial institutions worldwide, as these factors will shape future monetary policies and market trends. Bitcoin, the largest and most prominent cryptocurrency, has become a key variable in global financial markets, with its price closely tied to economic conditions, central bank policies, and investment trends. Given the current liquidity shortage and potential rate cuts, market direction remains uncertain, prompting analysts to advise investor caution. Changes in central bank policies, particularly those of the U.S. Federal Reserve, continue to significantly influence cryptocurrency prices. In the coming weeks, economic data and signals from central banks will determine market conditions, guiding investors in adjusting their strategies accordingly.
Source: coindesk