On December 2nd, according to data from Glassnode, over 37,000 bitcoins (worth $1.4 billion) have been withdrawn from trading platforms since November 17th, indicating that investors are directly holding their tokens. Some market observers suggest that the expected interest rate cuts by central banks in the coming months may attract capital into the market, leading to greater volatility in speculative markets such as cryptocurrencies. TradeStation's brokerage business manager, Anthony Rousseau, said that the Federal Reserve has already paused its rate hike cycle, and central banks around the world have followed suit. There is reason to believe that we have reached the peak of this tightening cycle. In order to sustain buying pressure for risk assets, we need to see a path forward with lower interest rates and an end to quantitative tightening. There may be an opportunity for positive market liquidity flow in 2024. Bitcoin is a pure reflection of market liquidity flow, and we need to see positive liquidity flow to support any substantial bullish activity.
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