Bitcoin Eyes $65k Breakthrough Amid Fed Liquidity Injection

Bitcoin has broken above a six-day downtrend and is gaining momentum, but its progress to reach $65,000 may be limited due to investors rotating back into gold. The Federal Reserve's planned $17 billion liquidity injection could support risk assets including Bitcoin, but stablecoin outflows indicate money is still leaving crypto.

For Bitcoin to break above $70,000, significant on-chain liquidity inflows are needed, according to some analysts. However, strong demand for gold as a safe haven may continue to cap Bitcoin's rise. This could mean that Bitcoin's growth will be slow until more investors become confident in its long-term value.