🌋 Bitcoin at the Heart of a Global Liquidity War
An important event is happening behind the scenes. Bitcoin is not moving solely due to media hype; it is caught between two opposing economic superpowers.
🇯🇵 Japan's Impact - Liquidity Drain
Japan has raised interest rates to levels not seen in decades. This is significant because the yen has long been a global funding currency. With borrowing costs rising, institutions are unwinding their yen-funded positions and repatriating their capital.
Historically, this type of shift leads to a withdrawal of liquidity from global risk markets. When yen positions are unwound, assets like stocks and cryptocurrencies often face real selling pressure, and Bitcoin is no exception.
🇺🇸 United States Impact - Liquidity Inflow
At the same time, U.S. institutional demand is accelerating.
Bitcoin exchange-traded funds (ETFs) from companies like BlackRock and Fidelity are absorbing supply daily. This is not fast retail capital. It is money allocated for long-term investment - capital that buys on price dips, supports market structure, and is not emotionally affected by short-term market volatility.
This demand is structural, not speculative.
⚖️ What Does This Mean for Traders?
Current market volatility is not weakness; it is a struggle.
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