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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...

Bitcoin [BTC] started out as a means of payment, but with time, it is becoming a store of value. While the asset has become more mainstream its utility continues to get questioned. Some call it digital gold for its similarities with the latter. Regulators continue to remain in a haze if they should regulate the asset under securities, commodities, or currency. The true identity of the asset is often challenged. However, the term “outside money” has now entered the frame. Inside Money v. Outside Money Earlier this year, Zoltan Pozsar, a former Federal Reserve and U.S. Treasury Department official who is currently at Credit Suisse brought to light the terms “inside money ” and “outside money .” Inside money is often referred to as fiat. Outside money on the other hand is basically “non-sovereign currencies.” Earlier this year, Pozsar noted how a new global monetary order was emerging as a result of the commodity crisis in the United S...