Bitcoin Tanks — But Top Crypto Titans Say a Liquidity Tsunami Is Coming
Despite Bitcoin's recent price drop, crypto leaders predict a major rally driven by expanding global liquidity and anticipated Federal Reserve actions.Summary
Following a sharp decline in Bitcoin's price, prominent cryptocurrency figures like Raoul Pal and Arthur Hayes remain optimistic, citing impending liquidity expansion. Pal attributes the current downturn to market liquidity tightening caused by the Federal Reserve's Quantitative Tightening (QT) and the US government shutdown, which is causing the Treasury General Account (TGA) to build up cash. He anticipates a reversal once the shutdown ends and the Treasury begins spending, effectively expanding the balance sheet.
Arthur Hayes agrees on the liquidity depletion but expects the Fed to implement a 'stealth QE' through the Standing Repo Facility (SRF) rather than a formal QE announcement due to inflation concerns. Meanwhile, analysts like Tom Lee maintain aggressive year-end targets, projecting Bitcoin to reach $200,000, supported by strong fundamentals in Ethereum and rising stablecoin volume.
(Source：BeInCrypto)