3/ Why Should You Be Cautious?
There are several factors making Bitcoin traders cautious right now. Rising U.S. Treasury yields, increased market volatility, and regulatory scrutiny are all contributing to the uncertainty. With the upcoming Federal Reserve meeting, we could see a painful price dip in the short term.
While BTC has shown resilience, external macroeconomic pressures could lead to a correction. It’s important to stay alert and closely monitor these factors before making any moves.
2/ Bitcoin and USD Liquidity
Despite some short-term fluctuations, we haven't yet seen a meaningful increase in USD liquidity this cycle. Historically, Bitcoin tends to perform best during periods of balance sheet expansion and when money is being printed.
It's not a question of if liquidity will rise again, but when. Once the floodgates reopen, Bitcoin could see another significant rally as it has in past cycles.
1/ ETF Flows Overview 📊
$BTC: +$458.5M
$ETH: +$24.2M
Bitcoin continues to see significant inflows, with $458.5M added today—one of the highest days in recent weeks. Ethereum followed with $24.2M in inflows, marking another positive day for both assets. The consistent inflows indicate strong institutional interest, particularly in Bitcoin, as the market gears up for the upcoming U.S. elections and potential altseason.
Still being cautious on this big moves and major resistances is a good strategy for now as the next few weeks will get very volatile.
Remember nothing here is financial advice.
4/ Growing Stablecoin Supply
The market has been in consolidation, but stablecoin supply has been steadily increasing, now exceeding $160B combined. While this liquidity isn’t being deployed all at once, a significant portion is likely waiting on the sidelines for more market clarity, particularly after the upcoming U.S. elections.
This growing stablecoin supply could signal a potential wave of investment once clearer market conditions emerge, making it an important factor to watch in the near term.
