Analyst: As central banks around the world loosen monetary policy, Bitcoin may become the main beneficiary of increased global liquidity

2024-12-13 20:58:36

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ChainCatcher news, analysts indicate that as central banks continue to ease monetary policy, the price of Bitcoin may become a major beneficiary of the increase in global liquidity.

The European Central Bank announced its fourth interest rate cut of the year this week, lowering the deposit rate by 25 basis points to 3%; after the People's Bank of China cut rates for the first time in 14 years, Goldman Sachs and Morgan Stanley expect a further 40 basis points cut in 2025, marking the largest annual decline since 2015; regarding the Federal Reserve, the CME FedWatch tool shows a probability of over 96% for a 25 basis point rate cut at the FOMC meeting on December 18.

Kooner added that after a recent $1.7 billion liquidation, the market's leverage has significantly decreased, and combined with the year-end "Christmas rally" effect, Bitcoin is expected to start a new round of increases.

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