Bitcoin battles $50K price target as Fed adds $13.5B overnight liquidity
The Fed injected $13.5B in liquidity, boosting risk assets, but Bitcoin faces potential downside risk despite bullish sentiment.Summary
Bitcoin received a macro bull signal as the US Federal Reserve injected $13.5 billion of overnight liquidity into the banking system via repo transactions, marking the second-largest injection since the COVID-19 pandemic and signaling an end to quantitative tightening this month. This move occurs while markets anticipate Fed rate cuts in December, generally favoring risk assets. However, despite optimism in equities, some analysts warn that Bitcoin could be a leading indicator for a broader risk-asset "reversion." Specifically, Bloomberg Intelligence strategist Mike McGlone suggests that extreme stock market complacency and historical Bitcoin-to-gold valuation suggest a potential drop toward a $50,000 price target if the ratio reverts to a 13x multiple.
(Source：Cointelegraph)