According to the latest research report from crypto finance firm Matrixport, the US market has entered a new cycle of liquidity release.
Matrixport: US Liquidity Cycle Restarts, Bitcoin Could Rise
The report predicts that structural funding support could sustain the rise in Bitcoin and other risky assets, and that this trend could continue until 2026.
Matrixport states that the current funding structure, credit environment and policy conditions in the US are sending positive signals, and these multiple factors could support asset prices upwards.
The rapid growth in money market funds is particularly striking. According to data, US money market funds have increased from $3 trillion to $7.4 trillion since the fourth quarter of 2018.
Annualized interest income reached $320 billion. Furthermore, the recovery in credit supply, the increase in commercial and industrial loans, and liquidity injections from fiscal stimulus are expected to continue to support Bitcoin.
Matrixport emphasizes that increased lending activity and an expanding money supply in the US could increase investors’ risk appetite, leading to greater capital flows into cryptocurrency markets. Analysts say that altcoins, along with Bitcoin, could benefit from this process, but market fluctuations should be closely monitored.
This report suggests that the next two years could potentially be a strong bull period for crypto investors.
*This is not investment advice.