The cryptocurrency market has experienced a surge, with Bitcoin surpassing $110,000. This increase is attributed to positive news from the United States, including significant events such as Trump's media company's intention to accumulate Bitcoin reserves. Concurrently, new tariff agreements are being developed, which are expected to further impact the market. Additionally, global liquidity trends, as highlighted by Lark Davis, are viewed as precursors to more upward movements in the cryptocurrency space.
Increased global liquidity is creating favorable conditions for a sustainable rise in risk markets, including cryptocurrencies. Major economic powers such as the European Union, China, and Japan are actively adopting monetary expansion strategies. While the U.S. Federal Reserve remains hesitant to lower rates due to inflationary concerns, the global trend is quite the opposite, with significant liquidity injections observed worldwide.
Lark Davis particularly emphasized China's recent significant actions in this area.
Recently, China injected a substantial $53 billion in liquidity into the market through reverse repo operations by the People's Bank of China, providing 382 billion yen ($53 billion). Following Japan, this additional liquidity from China marks a significant global financial influx, which is favorable for cryptocurrencies.
Recent data from the U.S. indicates that long-term consumer confidence is beginning to stabilize. A decline in long-term inflation expectations, which has been a serious concern for the Federal Reserve, may further weaken, with forecasts indicating a drop in the PCE index by Friday. As inflation decreases and global liquidity increases, along with Trump's strategy of reserving Bitcoin, several major events are laying the groundwork for June, a period marked by significant events such as the initiation of the $5 billion FTX return within days.
Technical analyst ANBESSA shared his thoughts on the Bitcoin chart, emphasizing the ongoing transformation of resistance and support around the $109,000 mark. If this level does not hold, lower time frames may be observed before any significant breakout and price exploration.
In the altcoin sector, Mustash draws attention to the formation of a god candle on the TOTAL2 chart.
Mustash highlights a significant recovery of the trend line on the TOTAL2 chart, which has been observed for over 8 years, suggesting an impressive movement indicated by the RSI.
Despite market fluctuations, the current changes and favorable liquidity conditions on a global scale continue to support positive sentiment and potential upward trends in the cryptocurrency market. As financial markets evolve and adapt to this dynamic, the performance of Bitcoin and various altcoins remains in focus for both market participants and analysts.
$BTC , $ETH , $SOL
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