Reserve

FOMC

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Bitcoin

While Bitcoin and top altcoins are stable at press time, the sharp liquidation from the weekend to August 5 led to a major shakeout. Billions of leveraged positions were liquidated, and prices are technically under pressure despite the current stability. 
<h2 id="global-liquidity-set-to-rapidly-rise-will-bitcoin-benefit">Global Liquidity Set To Rapidly Rise: Will Bitcoin Benefit?</h2> 
Still, even with the risks of Bitcoin, Solana, Ethereum, and others dropping to multi-week support levels, one analyst on X <a class="editor-rtfLink" href="https://x.com/CryptoMichNL/status/1820744588941725986" target="_blank" rel="noopener nofollow">thinks</a> the market is ripe for a rebound. 
In a post, he explained that the United States Federal Reserve, the central bank, plans to change its monetary policy in the coming weeks, which would automatically mean the start of money printing. 
<img loading="lazy" decoding="async" class="size-full wp-image-313857" src="https://bitcoinist.com/wp-content/uploads/2024/08/GUSVfZ6XwAAeOuF.jpg?resize=828%2C1024" alt="Prepare for the money printers | Source: @CryptoMichNL via X" width="828" height="1024" srcset="https://bitcoinist.com/wp-content/uploads/2024/08/GUSVfZ6XwAAeOuF.jpg?resize=828%2C1024?w=828 828w, https://bitcoinist.com/wp-content/uploads/2024/08/GUSVfZ6XwAAeOuF.jpg?resize=828%2C1024?w=340 340w, https://bitcoinist.com/wp-content/uploads/2024/08/GUSVfZ6XwAAeOuF.jpg?resize=828%2C1024?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/08/GUSVfZ6XwAAeOuF.jpg?resize=828%2C1024?w=534 534w, https://bitcoinist.com/wp-content/uploads/2024/08/GUSVfZ6XwAAeOuF.jpg?resize=828%2C1024?w=750 750w" sizes="(max-width: 828px) 100vw, 828px" data-recalc-dims="1"> 
While the crypto community expected the Federal Reserve to begin slashing interest rates, which are currently at multi-year highs, the decision to postpone means rates are still higher than anticipated. 
For now, the United States central bank will likely&nbsp;slash rates to 5% in the next<a href="https://bitcoinist.com/fomc-spooks-crypto-200-m-liquidated-in-selloff/" target="_blank" rel="noopener "> FOMC</a> meeting, which is set for September. The analyst also said the Federal Reserve will initiate a Treasury Buyback operation when this happens. Through this initiative, the government will inject approximately $30 billion into the economy monthly. 
The drop in interest rates and the buyback program will significantly boost global liquidity. Historically, and especially in the events from 2020 to 2021, when governments across the globe intervened to curb the impact of the COVID-19 virus, global liquidity rose sharply. 
Rising in tandem, Bitcoin and crypto prices rose to multi-year highs. Specifically, investors shifted to Bitcoin during that run, citing its inherent scarcity and the probability of the coin preserving value. 
<img loading="lazy" decoding="async" class="size-full wp-image-313858" src="https://bitcoinist.com/wp-content/uploads/2024/08/GUPXAolWMAAfOn4.jpg?resize=1024%2C917" alt="Global liquidity rising | SourcE: @martypartymusic via X" width="1024" height="917" srcset="https://bitcoinist.com/wp-content/uploads/2024/08/GUPXAolWMAAfOn4.jpg?resize=1024%2C917?w=2236 2236w, https://bitcoinist.com/wp-content/uploads/2024/08/GUPXAolWMAAfOn4.jpg?resize=1024%2C917?w=469 469w, https://bitcoinist.com/wp-content/uploads/2024/08/GUPXAolWMAAfOn4.jpg?resize=1024%2C917?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/08/GUPXAolWMAAfOn4.jpg?resize=1024%2C917?w=737 737w, https://bitcoinist.com/wp-content/uploads/2024/08/GUPXAolWMAAfOn4.jpg?resize=1024%2C917?w=1536 1536w, https://bitcoinist.com/wp-content/uploads/2024/08/GUPXAolWMAAfOn4.jpg?resize=1024%2C917?w=2048 2048w, https://bitcoinist.com/wp-content/uploads/2024/08/GUPXAolWMAAfOn4.jpg?resize=1024%2C917?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/08/GUPXAolWMAAfOn4.jpg?resize=1024%2C917?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
Currently, global liquidity is now at <a class="editor-rtfLink" href="https://x.com/martypartymusic/status/1820536366406729780" target="_blank" rel="noopener nofollow">over $106 trillion</a>. It will continue to rise, a net positive for Bitcoin and liquid but deflationary digital assets. 
<h2 id="caution-must-prevail-btc-finds-support-at-50-000">Caution Must Prevail: BTC Finds Support At $50,000</h2> 
Still, traders must be cautious. Bitcoin remains volatile, and no tool can predict precisely when prices will decrease. 
The immediate support is at $50,000, a round number. However, if there is a recovery and prices spike above $60,000, bulls might be encouraged to double down, recharging exhausted buyers. <a href="https://www.tradingview.com/x/ZYWPcrre/" rel="nofollow noopener" target="_blank"><img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/ZYWPcrre/" alt="Bitcoin price trending downward on the daily chart | Source: BTCUSDT on Binance, TradingView" width="1233" height="590"></a> 
&nbsp; 
Even amid this turbulence, institutions are confident in Bitcoin’s prospects. Following MicroStrategy’s methods, Semler Scientific <a href="https://www.prnewswire.com/news-releases/semler-scientific-reports-second-quarter-2024-financial-results-and-additional-bitcoin-purchases-302214705.html" target="_blank" rel="noopener nofollow">bought</a> $6 million worth of Bitcoin on August 5. The firm has owned 929 BTC since it began buying in May 2024.

Bitcoin Attractive, US Fed To Soon Begin Adding $30 Billion Every Month: Will BTC Fly?

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