💹 FED UPDATE ON LIQUIDITY – GLOBAL MARKETS ARE HOLDING THEIR BREATH

05h30 (GMT +7)

The liquidity of the FED through the balance sheet is always one of the most important indicators for the financial market – especially for crypto, stocks, and forex.

📌 1. Why is the liquidity number important?

The balance sheet reflects the amount of money that the FED pumps into or withdraws from the system.

• When the FED increases liquidity, cheap money flows into the market → risky assets increase in price.

• When the FED decreases liquidity, the market tightens → money flow contracts → prices can easily drop.

Just a small change in the balance sheet can create significant volatility.

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🔍 2. Two important scenarios for the day

🔼 Scenario 1: Liquidity > $6.53 trillion

→ This is a slight expansionary monetary state, indicating that the financial system is being supported.

→ Crypto, gold, stocks, and other currencies tend to rise sharply.

→ The market expects lower risk, and money circulates more quickly.

🟩 Impact: Very positive for BTC, ETH, low-cap Altcoins. $ETH

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😴 Scenario 2: Liquidity = around $6.50 trillion

→ This is a neutral maintenance level, neither pumping nor withdrawing.

→ The market is sideways, stable, and liquidity does not change significantly.

🟦 Impact: Low volatility, slight price fluctuations $BTC

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🧭 3. Why is the crypto market the most concerned?

Crypto is the most sensitive asset to money flow, so each change from the FED can create a significant impact:

• Increasing liquidity → money flows into altcoins → forms a new upward wave

• Decreasing liquidity → BTC holds its price, altcoins can easily adjust strongly

Reason: Crypto operates largely based on expectations and speculation, so it reacts faster than stocks.