How Will US Liquidity Needles Affect Bitcoin Growth in 2025?

• The transition of the US Federal Reserve (Fed) from quantitative tightening (QT) to quantitative easing (QE) could significantly affect the course of the Bitcoin market in 2025.

• Bitcoin stands to benefit from this trend as the Fed injects liquidity into the US economy, but long-term investors continue to clear their positions, creating strong market activity.

• According to the crypto analyst Chicken Genius, “The strengthening of the numbers will end this quarter,” which indicates a changing economic environment that can affect the price of Bitcoin.

This article examines the potential impact of the Fed’s quantitative easing on Bitcoin’s growth in 2025 in terms of continued selling by long-term investors.

Will US Liquidity Injection Drive BTC Higher?

the US market 400 billion dollarsLiquidity injection is a major trend that indicates the rise of Bitcoin. This strategy, demonstrated by the operation of the Fed’s Retracement Center, parallels the trends that led to the rise in the price of Bitcoin in the past. Similar actions in 2021 contributed to a notable rise in BTC, suggesting that Bitcoin may repeat its previous performance as long as liquidity remains high.

Historically, a correlation has been seen between Fed Repo increases and Bitcoin price increases, and many analysts expect the Fed’s ongoing liquidity injections to push BTC to new levels, surpassing all-time highs and all.

Performance of Short-Term Investors Between long-term sales

Another important aspect of this story is Short-term investors (STH) A lot of movement in between. As long-term investors sell their assets, STHs step in to absorb this flow. Payment to long-term investors from mid-September 2024 14.2 million BTCFrom around the beginning of January 2025 13.1 million BTCIt presented a significant selling price, down to .

During this period, the supply of STH increased significantly. 2.5 million BTCit is 3.8 million BTCIt spread to . This trend shows that long-term investors are leaving the market, while new participants are taking advantage of the price changes, creating an interesting mix of market prospects.

Price Movement and Market Structure

According to the latest market analysis, Bitcoin $95K Trying to regain his level. If $97K If it manages to close up, the market structure may find high time depression and create a positive view of cryptocurrency.

However, its failure to hold more than $97K is a major support level. 100-day exponential moving average (EMA) around $93K or where there is a dire need $90K may result in retesting.

Conclusion

As the Federal Reserve’s actions continue, Bitcoin’s course will largely depend on the balance between liquidity injections and selling pressure from long-term investors. The interaction of these factors can determine whether Bitcoin will push to new levels or suffer a setback to lower support levels. It is important for investors to pay attention to these developments, as they have the potential to significantly shape the world of cryptocurrency.