Analysts at Matrixport believe that the altcoin market currently lacks liquidity for growth. According to them, without significant investments supported by real usage or a sharp increase in liquidity, the altseason will not begin in the short term.
This is reported by Finway
Liquidity Assessment in the Market
Matrixport experts emphasize that significant growth in liquidity is not expected in the near future. For a stable increase in the value of Bitcoin, a combination of three main sources of liquidity is necessary:
- favorable policy from the U.S. Federal Reserve or a decrease in interest rates;
- micro liquidity, particularly an increase in the volume of stablecoins or the use of leverage;
- macro liquidity, which includes new stimuli in the form of household support or other measures.
The Impact of the Fed’s Policy on Liquidity
Matrixport experts noted that the U.S. Federal Reserve is likely to keep interest rates unchanged despite inflationary pressures, particularly due to the planned tariffs from Donald Trump.
“While markets have already priced in the return of Trump in 2025, Fed Chair Jerome Powell emphasizes a cautious approach, which also reduces the likelihood of a significant influx of liquidity,” the report states.
It is worth noting that earlier, the CEO of the analytical platform CryptoQuant, Ki Young Ju, expressed the opinion that this altseason will be unusual and complex.