The post Bitcoin Faces Potential Challenges Amid Negative Global Liquidity and Shifting Market Correlations appeared on BitcoinEthereumNews.com.

Bitcoin’s recent performance highlights a critical shift as global liquidity turns negative, impacting its momentum against major U.S. stocks. Despite outperforming during recent tariff tensions, Bitcoin’s gains have stalled, reflecting broader macroeconomic pressures affecting risk assets. According to COINOTAG sources, the decline in central bank balance sheets signals tightening liquidity, which historically correlates with subdued Bitcoin rallies. Bitcoin faces pressure as global liquidity declines, stalling gains versus U.S. stocks amid tightening macroeconomic conditions and shifting risk appetite. ‘, ‘ 🚀 Advanced Trading Tools Await You!Maximize your potential. Join now and start trading! ‘, ‘ 📈 Professional Trading PlatformLeverage advanced tools and a wide range of coins to boost your investments. Sign up now! ‘ ]; var adplace = document.getElementById(“ads-bitget”); if (adplace) { var sessperindex = parseInt(sessionStorage.getItem(“adsindexBitget”)); var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBitget.length) : sessperindex; adplace.innerHTML = adscodesBitget[adsindex]; sessperindex = adsindex === adscodesBitget.length – 1 ? 0 : adsindex + 1; sessionStorage.setItem(“adsindexBitget”, sessperindex); } })(); Negative Global Liquidity and Its Impact on Bitcoin and Risk Assets Global liquidity, often proxied by central banks’ total balance sheet assets, plays a pivotal role in fueling risk-on assets like Bitcoin. When liquidity expands, investors have more capital to deploy, often driving up prices in speculative markets. The recent downturn in this metric, dipping below zero again, signals a contraction in available capital, which historically has led to weaker performance in Bitcoin and equities. This contraction is typically a result of tighter monetary policies, such as interest rate hikes or reduced fiscal stimulus, which dampen investor enthusiasm for higher-risk assets. ‘, ‘ 🔒 Secure and Fast TransactionsDiversify your investments with a wide range of coins. Join now! ‘, ‘ 💎 The Easiest Way to Invest in CryptoDont wait to get started. Click now and discover the advantages! ‘ ]; var adplace = document.getElementById(“ads-binance”);…

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Filed under: News - @ June 8, 2025 1:02 am