Fed Liquidity Injection May Not Be Enough for Bitcoin to Break Above $65K
Bitcoin's technical analysis suggests it may finally break above $65K this week, but it won't be easy. The BTC/XAU ratio has decreased by 7.22% this month, indicating investors are rotating out of Bitcoin and back into gold. This trend is not limited to the spot market, with tokenized commodity market cap growth favoring XAUT and PAXG over the last 30 days.
However, a move above $65K resistance could be fueled by the Fed's latest liquidity injection, which will inject $17 billion into risk assets starting next week. If this liquidity flows directly into Bitcoin, it would propel the price well above $65K.
But, according to DeFiLlama data, stablecoin market cap continues to witness deposit outflows, with over $5 billion leaving the market so far in Q3. This suggests that liquidity needs to come back into the fold for Bitcoin to break out and rise above $70K.