The Curious Case of Bitcoin and Liquidity

$108 Trillion and Bitcoin Still Stuck? 🤯

The Curious Case of Bitcoin and Liquidity

Global M2 money supply just hit a record high of $108.2 trillion. That’s enough liquidity to send Bitcoin to the moon, right? 🌕 Wrong! Bitcoin’s price is stubbornly range-bound. What gives? Is something broken, or is this just a delayed breakout waiting to happen?

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Markets on edge as the Fed meeting looms

Markets are sweating it out ahead of the Federal Reserve’s March 18-19 meeting. Economic conditions are more volatile than a toddler on a sugar rush, with stock markets taking a tumble and inflation refusing to go away. Investors are playing a nervous game of musical chairs as they try to guess when the Fed will finally cut interest rates.

Adding to the drama, Trump’s tariff shenanigans and those pesky federal layoffs are making everyone wonder if the whole economic house of cards is about to collapse. 😱

The Fed, bless their hearts, is expected to keep interest rates at 4.25-4.5%. No surprises there. But the real question is: when will they finally cave and cut rates? Current predictions say sometime in June.

Meanwhile, investors are hoping for a total of three-quarters of a percentage point reduction in 2025, which would bring the benchmark rate down to a more leisurely 3.5-3.75%.

This uncertainty has sent financial markets into a tailspin. The S&P 500 has dropped more than 8% since its all-time high in February, and the Nasdaq had its worst trading day since 2022 on March 10. The volatility index is through the roof, reflecting the collective anxiety of investors trying to navigate this minefield of shifting policies.

And what about Bitcoin? Well, it’s also struggling to find its footing, stuck in a range around $82,300 as of March 18. That’s a far cry from its all-time high of $109,114 in January. Looks like even Bitcoin is feeling the pressure.

So, what’s next? Will markets erupt in a frenzy when the Fed finally drops a hint about a rate cut? And what does all this mean for Bitcoin in the weeks

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2025-03-19 21:01