Viewpoint: The Fed's slowdown in balance sheet reduction may increase liquidity, which is good for risky assets such as cryptocurrencies

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MarsBit
03-25
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Mars Finance News: After the Federal Reserve announced a slowdown in balance sheet reduction, Bitcoin rebounded from below $83,000 and briefly broke through $88,000. Shubh Varma, CEO of crypto research platform Hyblock Capital, pointed out that the slowdown in balance sheet reduction might enhance liquidity, which is favorable for risky assets like cryptocurrencies. However, concerns about Trump's uncertain tariff policies continue to suppress the stock market and cryptocurrencies. Some analysts believe that from a technical perspective, BTC may need to explore down to $70,000 before restarting an upward trend. Additionally, according to the Federal Reserve Watch Tool from the Chicago Mercantile Exchange, federal funds futures prices reflect an 89.1% possibility of at least two interest rate cuts by the Federal Reserve this year.

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