Crypto Crisp: Imminent Surge in Liquidity
Last Wednesday, the U.S. Consumer Price Index (CPI) for May was released, showing soft inflation. However, during the U.S. Federal Reserve’s (FED) subsequent FOMC meeting on the same day, the Fed was more hawkish than expected, indicating only a 25 basis points interest rate cut this year. This led to declines across the crypto market.
We view this as unnecessary panic and disagree with the negative trajectory the crypto market took last week. As we enter the second half of June, we anticipate a surge in U.S. liquidity, which we expect to continue over the coming months. See Chart 1 and below for details.
Not least…
The crypto market took a hit last week after a more hawkish-than-expected FOMC meeting by the U.S. Federal Reserve. In our opinion, the market will soon return to its levels before last week’s downturn. Numerous positive factors are on the horizon, including an imminent surge in liquidity.
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