Analysts warn that Bitcoin could face short-term pressure as tightening global liquidity, following Trump's re-election, signals a potential pause in price gains.

Cryptocurrency investors should brace for a short-term slowdown as global liquidity tightens, Matrixport, a blockchain analysis center in Asia, wrote on January 8. Research note.

According to cryptocurrency analyst Markus Thelen, the tightening comes after the US dollar surged following Trump's re-election, and historically, shifts in global liquidity tend to weigh on Bitcoin (Bitcoin) price after about 13 weeks. As liquidity tightens, bitcoin could enter a consolidation phase, Thelen warns, noting that this typically happens when dollar-denominated liquidity weakens. Despite the decline, the analyst expects this phase to be short-lived.

“The broader outlook for risk assets, especially Bitcoin, remains constructive,” says Thelen, noting that traders may act more cautiously when liquidity indicators are less favorable, where they have been reliable in the past. Right now, Bitcoin may face some hurdles, but the long-term picture remains positive.

The warning comes as Bitcoin exchange-traded funds saw a sharp decline in inflows on January 7, following a 5% decline in Bitcoin, fueled by growing expectations of tighter policy. Federal Reserve.

Such as crypto.news I mentioned Earlier, Bitcoin fell nearly 6% on January 7, affected by rising US bond yields and caution among investors ahead of important economic updates. The rise in bond yields has raised expectations of a tougher stance from the Federal Reserve, with officials pointing to only two interest rate cuts in 2025, fewer than expected.