Bitcoin 'faces headwinds' as US money supply drops most since 1950s
Research from Bloomberg Intelligence argues that liquidity conditions still do not favor a continuation of the Bitcoin rally. Bitcoin (BTC) and crypto may yet see a long-term correction thanks to central banks keeping liquidity tight, Bloomberg warns. In its latest research, Bloomberg Intelligence revealed cool stance on the ongoing 2023 crypto market rally. Bloomberg: Expecting BTC price to hold "may be illogical" Despite gaining 70% in Q1, Bitcoin is not convincing everyone that it will continue to climb or even maintain current levels near $30,000. Examining the macroeconomic climate, Bloomberg Intelligence became the latest voice to note the close relationship between crypto performance and global central bank liquidity levels. As inflation bites, banks have been withdrawing liquidity from the economy, with risk assets declining as a result — including crypto. The United States Federal Reserve’s quantitative tightening (QT), which began in late 2021, coincided with the c...