A recent report from Matrixport highlights the significance of rising global money supply on the cryptocurrency market, especially in the context of trading expectations amidst changing liquidity.
Impact of Rising Money Supply on Crypto Market
Matrixport, a notable crypto finance entity, emphasizes the impact of the rising U.S. money supply, projected to reach $22 trillion by April 2025. Increased liquidity is expected to alter the pricing dynamics of assets like BTC and ETH, which are highly influenced by these monetary conditions.
Matrixport Strategies and Their Trading Impact
Matrixport's CEO, John Ge, and co-founder Jihan Wu, affirm their roles in the crypto landscape through strategic market analyses. The research indicates a noteworthy shift in trader focus toward the implications of U.S. Federal Reserve's policy adjustments and the effects of increased money supply on risk assets.
Expert Predictions for the Market's Future
Experts predict that continued increases in M2 will further bolster markets. Matrixport's analysis suggests that these dynamics, coupled with historical trends, indicate a potential upswing in asset valuations, directly impacting crypto investment flows.
Thus, the rise in the money supply in the U.S. significantly influences the cryptocurrency market, necessitating careful monitoring of changes in monetary policy and their impact on assets.
