Liquidity's Grip On Crypto: How Central Bank Policies Are Reshaping Bitcoin's Fate
Portfolio Pulse from Murtuza Merchant
Bloomberg Intelligence analyst Jamie Coutts has linked central bank liquidity and global money supply to Bitcoin's dynamics, noting a structural uptrend in cryptocurrency adoption despite volatility. Bitcoin is increasingly seen as a reserve asset by energy-rich nations investing in mining, indicating its growing financial significance. A Bitfinex report also points to a substantial increase in Bitcoin's value, cautioning investors ahead of the 2024 Bitcoin halving event.
November 21, 2023 | 5:11 pm
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POSITIVE IMPACT
Bitcoin's adoption is on a structural uptrend, influenced by central bank policies. Sovereign investments in Bitcoin mining highlight its role as a reserve asset. The upcoming Bitcoin halving in 2024 is expected to tighten supply, potentially affecting its price.
The analysis by Jamie Coutts suggests a positive correlation between central bank liquidity and Bitcoin adoption, which could drive demand and price. The sovereign investments in mining facilities reinforce Bitcoin's legitimacy and potential demand. The upcoming halving event historically leads to a price increase due to reduced supply, which could further drive short-term price appreciation.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100