Opportunities Are Emerging for a Rise in Bitcoin and Altcoins

Bitcoin is once again attracting investors' attention by rising above the 106 thousand dollars level. The increase of Bitcoin price above 103 thousand dollars following the sharp sell-offs experienced in recent weeks has created a positive atmosphere in the markets. Experts state that one of the reasons behind this recovery is the easing of liquidity conditions in the US financial system. This development could allow investors to turn towards riskier assets.

The SOFR-EFFR spread, which measures liquidity in the US banking system, rose to its highest level since 2019 last month, raising concerns. However, in recent days, this spread has decreased from 0.35 to 0.05, returning to normal. This situation indicates that the fear premium in the markets has decreased and dollar liquidity has relaxed. Historical data shows that such easing has created upward momentum for Bitcoin and altcoins.

In parallel with the increase in liquidity, the fact that borrowings from the Federal Reserve's securities repo facility (SRF) have dropped to zero shows that banks' short-term funding needs have decreased. The Dollar Index (DXY), which indicates the value of the dollar, is facing resistance at the 100.25 level. While the dollar weakens, the values of Bitcoin, Ethereum, XRP, SOL, and BNB have increased by 1.5% to 2.5%.

Analysts emphasize that for a similar rise in the crypto market to continue, there should be a resumption of entries into spot Bitcoin ETFs traded in the US. There has been an outflow of approximately 2.8 billion dollars in the last four weeks. Additionally, a sustained breakout above 100.25 in the DXY index could limit Bitcoin’s short-term rise.

Considering the general conditions, the easing of liquidity conditions and the depreciation of the dollar could support the stability of Bitcoin price above one hundred thousand dollars again. Investors should carefully monitor developments in this process and take market trends into account.