Altcoins Dip 1-2% Amid Global Liquidity Surge

Investors who braved the market lows in November 2022 and purchased during the period of extreme fear have started to see the fruits of their strategies. However, a robust upward movement consistent with a true bull market has yet to emerge. Many investors are hoping for a repeat of the 2021 market conditions, although some experts suggest this may not materialize. Veteran investors remain optimistic due to their past experiences, with key factors to watch being global liquidity trends and the M2 money supply.

Global liquidity and the M2 money supply have been on the rise, reaching new all-time highs. Several regions, including China, have been actively injecting liquidity into their markets. The European Union continues with interest rate cuts, with numerous countries lowering their rates to near-historic lows. However, the Federal Reserve has yet to align its current interest rate with inflation. Despite a halt in the decline of inflation, largely attributed to tariffs causing market uncertainty over the past six months, the feared severe impacts of tariffs on inflation have not been observed. Thus, while global liquidity and M2 are expanding, many anticipate that the Federal Reserve will need to begin reducing interest rates for a full-fledged crypto bull market.

Altcoins are experiencing a slight decrease of 1-2% today. Amid the drafting of the report, potential economic cooperation with the USA was mentioned, while the Ukraine conflict seems to be nearing its end. A deal with Iran has been signed, and it has been two days since a trade agreement was completed. Consequently, the anticipated period should commence.

An analyst shared insights on SEI Coin, stating that they watched the market but did not buy SEI, remaining largely offline. Their trading idea was to enter and exit at 50% from the 0.50 fib level and 50% from the 0.618 fib level, but being away from the keyboard, they couldn’t execute it. Another analyst, Jelle, now believes that the BTC surge should commence, citing a strong weekly candle and a trend breakout with lows broken and a candle signaling an ascent. The current state indicates a rise in the market.