Money Market Conditions - Money market strains could persist into November [1] - Funding costs remain stubbornly high [1] Federal Reserve Policy - Building pressure for the Federal Reserve to bolster liquidity [1] - This pressure exists even before the Fed stops shrinking its portfolio next month [1]

RT Ruthie (@Ruthycrypt)Solana DEXs just processed $7.49B in trading volume over the past 24 hours.Even in a choppy market, Solana’s liquidity remains unmatched, showing how deep its DeFi rails have become. https://t.co/izuLHArIpq ...

The vibe? Cautious optimism.Liquidity is flowing, but conviction is thin.See how the community is reading the Fed move and drop your take inside CMC Topics🔗 https://t.co/Ln1UnsiD0J4/4 ...

Core Insights - Bitcoin is currently trading at $104,376, having experienced a decline from recent highs of $111,190 and $111,250 over the weekend [1] - Despite significant global liquidity increases, including $125 billion injected by the US Federal Reserve and China's M2 money supply reaching $47 trillion, Bitcoin's price has not responded positively [2][5] Group 1: Liquidity Dynamics - The relationship between liquidity and Bitcoin prices is becoming increasingly complex, with the notion that expanding liquidity will automatically lead to higher Bitcoin prices being deemed simplistic [3] - The recent liquidity injections by the Fed are aimed at stabilizing short-term funding markets rather than stimulating broader risk-taking, which affects market liquidity that typically flows into assets like Bitcoin [4] Group 2: China’s Monetary Expansion - China's M2 money supply has reached approximately $47.1 trillion, more than double that of the US, which stands at around $22.2 trillion, highlighting a significant liquidity gap [5][6] - This unprecedented gap in liquidity dynamics reflects China's long-term credit expansion strategy focused on infrastructure and exports rather than speculative markets [6]

RT Milk Road (@MilkRoad)Stablecoin liquidity on Ethereum continues to explode.The stablecoin supply on $ETH just crossed $184B.That’s +$100B since January, the fastest inflow the chain has ever seen. https://t.co/ueQsEuUnSn ...

The U.S. Secured Overnight Financing Rate (SOFR) rose by 18 basis points to 4.22% on November 3, marking its largest single-day increase in a year. The spike may have been driven by heightened government shutdown risks prompting the U.S. Treasury to concentrate short-term debt issuance. The resulting surge in Treasury supply likely drained liquidity from funding markets, pushed up repo rates, and in turn lifted SOFR. https://t.co/gaA7wjoXUp ...

RT Milk Road (@MilkRoad)Stablecoin liquidity on Ethereum continues to explode.The stablecoin supply on $ETH just crossed $184B.That’s +$100B since January, the fastest inflow the chain has ever seen. https://t.co/ueQsEuUnSn ...

RT Neon (@Neon_EVM)Liquidity and users coming to the best chain.Your EVM dApp should too. 🏎️ ...

Core Viewpoint - Analysts believe Bitcoin has reached a local bottom and predict a surge in liquidity will lead to a retest of record highs in the coming months [1][2]. Group 1: Market Conditions - Bitcoin's price dropped approximately 3% to just over $107,000, influenced by $800 million in asset sales from Bitcoin exchange-traded funds last week [1]. - Despite the recent dip, October has seen $3.4 billion in ETF inflows, indicating strong investor interest [2]. Group 2: Federal Reserve Policy - The Federal Reserve's announcement to end quantitative tightening from December 1 is expected to reverse the liquidity drain, creating a favorable environment for Bitcoin [3][4]. - Analysts anticipate further easing of liquidity once the US federal government shutdown concludes, which will enhance Treasury Department spending and bank reserves [3]. Group 3: Market Sentiment - Market sentiment is shifting towards cautious optimism, with Bitcoin consolidating between $105,000 and $115,000 as traders await clearer signals from central banks [5]. - As ETF flows stabilize and become more balance-sheet-driven, volatility is expected to decrease, setting the stage for a potential upward movement in Bitcoin's price [5].

💡 FED: The Fed injected $29.4B into the banking system to ease liquidity concerns, supporting BTC. It's the largest move since 2020, but not QE. What does this mean for crypto? 📈 Find out from the analysis by @godbole17 ...