According to the latest research report from Crypto Finance Firm Matrixport, the US market is referring to a new cycle of liquidity releases.
Matrixport: US liquidity cycle may restart and Bitcoin may rise
The report predicts that structural financial support could sustain an increase in Bitcoin and other dangerous assets, and this trend can continue until 2026.
Matrixport says that the current US funding structure, credit environment and policy terms are sending positive signals, and multiple factors could potentially raise asset prices.
The rapid growth of money market funds is particularly impressive. Data shows that US money market funds have risen from $3 trillion to $7.4 trillion since the fourth quarter of 2018.
Annual interest income reached $320 billion. Additionally, recovery in credit supply, increased commercial and industrial loans, and liquidity injections from fiscal stimulus are expected to continue to support Bitcoin.
Matrixport emphasizes that increasing lending activities in the US and growing supply of money will increase investors’ risk appetite and increase capital flows to the cryptocurrency market. Analysts say Altcoins could benefit from this process along with Bitcoin, but they need to closely monitor market fluctuations.
The report suggests that the next two years could be an era of strong bulls for crypto investors.
*This is not investment advice.
