Bitcoin has about 10 days left until US macro conditions support a return to higher BTC prices.
This is according to financial commentator Tedtalksmacro, which tracks the correlation between BTC price movements and US Federal Reserve (Fed) liquidity.
BTC price action is closely tied to Fed liquidity.
Bitcoin (BTC) may fall by around 3.2% in June, but that could change before the month ends.
In analyzing how the Fed’s liquidity situation affects BTC/USD, Tedtalksmacro revealed a close correlation that has persisted for several months.
“The correlation between Bitcoin and Fed liquidity continues to amaze me,” he wrote in a comment to X.
“Liquidity will bottom over the next 10 days and then rise again… get ready.”
A chart from his proprietary macro data resource, Talking Macro, shows BTC price highs and lows being in sync with local highs and lows in Fed liquidity.
Bitcoin’s recent all-time high of $73,800 in mid-March was also accompanied by a surge in liquidity.
Clarifying how liquidity is calculated, Tedtalksmacro confirmed that the figure is based on “a mix of Fed assets, repo markets, and financial data.”
Bitcoin ETF awaits US wirehouse inflows.
Talking Macro commented on Bitcoin’s short-term headwinds, noting a renewed decline in inflows into U.S. spot Bitcoin exchange-traded funds (ETFs).
Related: Bitcoin Price Uptrend Is ‘Saint’, Holders Earn 120% Gains — Research
After recording the second-highest daily inflows on record in early June, the trend has reversed and the last four Wall Street trading days have seen net outflows.
Data from monitoring resources including UK-based investment firm Farside Investors showed outflows over the four days were just over $700 million. This is still lower than the June 4 inflow of $886 million.
A new wave of institutional interest in Bitcoin is expected to continue beyond the third quarter as US telecom companies are expected to access spot ETF products.
As Cointelegraph reported, the incident forms a hot spot on the radar for those watching Bitcoin’s continued transformation into a heavyweight investment class for institutions. Among them is Cathie Wood, CEO of asset manager ARK Invest, one of the cash ETF providers.
“All this price action happened before they did because no platform has yet accepted Bitcoin, so we haven’t even started yet,” she said in an interview for a US news agency in March.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.