💸 Stock market falls — is bitcoin next?
Friends, yesterday Wall Street experienced one of its worst days in the past three years. In just 24 hours, $1.7 trillion was wiped off the U.S. stock market.
And since February 20, total losses have reached $4.5 trillion.
— S&P 500: -5.04%
— Nasdaq: -4.04%
— Dow Jones: -2.48%
Tech giants posted their worst performance since 2020. A broad correction is underway, fear is spreading, and investors are fleeing risk assets.
💰 There’s growing talk that the main driver for BTC right now is liquidity. The M2 money supply — a key measure of available money in the economy — has bottomed out and is starting to rise sharply.
Historically, Bitcoin tends to follow this trend with about a 20-day lag.
If the theory holds true, we might see a fresh price surge and a reversal for BTC in the coming weeks. However, it's important to note that not all M2 liquidity flows into risk assets.
— Some are buying gold, others prefer bonds, and some are simply moving into cash.
🔤 Arthur Hayes — former CEO of BitMEX believes:
1️⃣ $70,000 is likely the local bottom before further upside
2️⃣ A 30%+ correction is a standard part of a bull market
3️⃣ If the stock market continues to crash, major central banks will restart the money printer — and that means a new wave of liquidity that could send Bitcoin higher again
Financial markets move in cycles. Right now, we’re in a downturn marked by panic and risk-off behavior.
❕ But if the Fed and other central banks start flooding the system with liquidity again, Bitcoin may become the biggest beneficiary of the next phase 🔥
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