Market participants are on high alert as they await potential liquidity measures from the Federal Reserve, which could help mitigate recent funding volatility. Notable financial analyst Raoul Pal has suggested that the Fed may soon introduce short-term solutions to stabilize the markets. The source notes that these measures could play a crucial role in restoring investor confidence.
Potential Measures by the Fed
Pal highlighted that measures such as Term Funding and the Standing Repo Facility (SRF) could be implemented in the near future. These actions are anticipated to provide much-needed support to the financial system, potentially benefiting risk assets, including major cryptocurrencies like Bitcoin and Ethereum.
Historical Context and Market Reactions
The expected interventions draw parallels to the Fed's actions during 2018-2019, when similar measures were necessary to counteract sudden market fluctuations. As the situation unfolds, investors are keenly watching how these potential moves by the Fed could influence the broader crypto market.
As the cryptocurrency market faces downward pressure, MANA's trading activity reflects a broader bearish sentiment. For more details on this trend, see the full report here.
