Source: Jamie CouttsRelated: Bitcoin may benefit from US stablecoin dominance pushBitcoin price still limited by global trade war concernsWhile more global liquidity is an optimistic sign for Bitcoin, the world’s first cryptocurrency remains limited by global trade tariff concerns, according to James Wo, the founder and CEO of venture capital firm DFG:“While some may argue that retaliatory measures from tariff-imposed countries were already priced in, tariffs have a delayed economic impact beyond their initial announcement.”“Higher import costs and reduced corporate margins are likely to push inflation higher, forcing central banks to keep interest rates elevated for longer under a restrictive monetary policy,” he added.
Considering that the debt suspension will end just two weeks after the White House Crypto Summit, a portion of the new liquidity may flow into cryptocurrencies, according to Aleksei Ponomarev, co-founder and CEO of crypto index investing firm J’JO.“Surges in liquidity have typically benefited Bitcoin and risk assets, and the end of the US debt suspension will be no different,” he told Cointelegraph, adding:“While the liquidity surge will undoubtedly drive market price movement, it is limited to short-term impact.
Source: Cointelegraph/TradingView A resumption of government spending may bring a liquidity boost to catalyze Bitcoin’s next rally, according to Ryan Lee, chief analyst at Bitget Research.“With in-hand cash, the demand for financial assets such as stocks and crypto can increase, and there may be a relief from ongoing volatility,” the analyst told Cointelegraph.“In such periods, we can expect a boost in the overall momentum, although many other factors are important to note.”Beyond global tariff uncertainty, “concerns such as inflation, interest rates and geopolitical issues remain unresolved,” Lee added.
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Author / Journalist: Cointelegraph by Zoltan Vardai
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