New Indicators of Market Liquidity-----BTC

Last Friday night, whether it was AI giants, tech giants, Bitcoin, or risk assets including gold and silver, there was a simultaneous major pullback. Lucky remembers that on November 14th, Black Friday, a similar situation occurred. As shown in Figure 2, it is often Bitcoin that issues warnings in advance. Why is that?

Regardless of whether you pay attention to Bitcoin or not, you should read this article. When a liquidity crisis occurs, Bitcoin is the first to send signals, dropping early, sharply, and most honestly. On the night of the 12th, a series of hawkish remarks from Federal Reserve officials led to a liquidity crisis in the market. Institutions began to reduce risk exposure, selling AI, tech stocks, and cryptocurrencies. Among these, Bitcoin was the fastest to sell. Bitcoin is a product that trades instantly 24 hours a day, and its sharp decline is a preemptive reaction of the market to liquidity tightening. For those who invest in the future, it is advisable to pay attention.

This week there will be a major non-farm payroll report, CPI, and interest rate hikes, as well as various geopolitical issues. Lucky believes in a steady rise but urges caution when entering the market. Don't act blindly, and may good luck be with you.