Liquidity & Market Dynamics - Government shutdown starting October 1st initiates a Treasury General Account (TGA) build of $150 billion to $965 billion, draining cash from the market [1] - Reverse Repo Program (RRP) builds by $20 billion this week, causing bank reserves to fall to "ample" lows, leading to tight funding markets [1] - Tight funding markets are indicated by increased Secured Overnight Financing Rate (SOFR) spreads and record $10 billion usage of the Standing Repo Facility (SRF) [1] - Bitcoin's choppy range is hypersensitive to liquidity, preventing a breakout [1] - Post-month end, RRP decreases will return liquidity, and a TGA drawdown in mid-November will flood the market with cash [1] - Quantitative Tightening (QT) ends December 1st, leading to Federal Reserve balance sheet expansion [2] Crypto Market Impact - A liquidity tailwind is expected after the end of QT [2] - Bitcoin is expected to pump upwards due to increased liquidity [2] - The broader crypto market is also expected to pump upwards [2]

Policy Change - Argentina loosened the share of reserve requirements for commercial banks [1] - The policy aims to gradually provide more liquidity [1] - The policy also aims to revive lending [1] Political Context - The policy change occurred after President Javier Milei's party won a crucial midterm election [1]

RT LondonCryptoClub (@LDNCryptoClub)It’s just month end putting the final squeeze on liquidityRelax everyone ...

Monetary Policy - The Federal Reserve decided to end its balance-sheet runoff after a drop in bank reserves [1] - Officials are focusing on the federal funds rate as the main tool for monetary policy [1] - The federal funds rate will also help assess liquidity in the financial system [1]

Argentina is planning to marginally loosen the share of reserve requirements that commercial banks must report daily, in a bid to gradually provide more liquidity and revive lending, according to a person familiar with the matter https://t.co/YfwignQ8Y8 ...

All Bitcoin liquidity is now stacked to the upside.Is a V-shape reversal coming next? https://t.co/5lzIt4o9tn ...

Market Overview - The crypto market is experiencing instability following the Federal Reserve's interest rate cut of 25 basis points, with Bitcoin (BTC) down 2.5% to $110,200 and the CoinDesk 20 (CD20) index losing 1.7% [1][2] - The market faced over $820 million in liquidations within 24 hours due to Federal Reserve Chair Jerome Powell's cautious stance on future rate cuts, despite easing trade tensions with China [2] Central Bank Actions - The Federal Reserve announced it would end its balance sheet runoff by December 1, which could inject liquidity into financial markets [3] - Analysts from Bankinter noted that traditional asset prices are hindered by "altitude sickness," suggesting a positive underlying trend despite recent volatility [3] Crypto Market Dynamics - The October 10 flash crash has left both retail and institutional investors cautious, with liquidity in order books still not recovered [4] - Digital asset treasuries (DATs) are contributing to selling pressure, with many trading below 1 mNAV, prompting some to buy back shares using funds from asset sales [4] Options Expiry Impact - A $13 billion options expiry on Friday is expected to exert additional pressure on crypto prices, with market makers facing negative gamma at strike prices between $100,000 and $111,000, potentially amplifying price swings [5] Upcoming Events - Key upcoming events include the Cronos (CRO) mainnet upgrade, a special meeting for Core Scientific (CORZ) stockholder vote, and HashKey Chain (HSK) pausing new staking orders [5] - Earnings reports are anticipated from Coinbase Global (COIN), Reddit (RDDT), Riot Platforms (RIOT), and MicroStrategy (MSTR) on October 30 [6]

megaeth auction closed with 8% choosing 12-month locks vs 92% taking unlocked tokens. 37,000 addresses want immediate liquidity at mainnet launch. when less people lock than icp's 8% disaster launch you're not buying an ecosystem, you're exit liquidity for auction winners who already told you they're selling. ...

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 ...

This is the makeorb breakak moment for crypto. And what I mean by that is I see the potential for the biggest liquidity rotation of all time and that's Bitcoin dominance going down and surging into altcoins, altcoin season. I know that's a dirty word right now.I know people are screaming we're about to go into a prolonged bare market. Now is the time to be selling, but look at this chart. In 2017, altcoin season only happened when we hit this ultimate low and started traveling back up. In 2021, we hit this ...