Market liquidity works exactly like water pressure in a city pipe.
When the Federal Reserve twists the central valve, $BTC and $ETH react to the surge or trickle of capital. Watch the federal funds rate; it is the ultimate gauge for how much flow hits this sector. Just remember, this analogy has limits: crypto is a global, permissionless network, not a municipal utility.
#Macro #Crypto #Liquidity
When the Federal Reserve twists the central valve, $BTC and $ETH react to the surge or trickle of capital. Watch the federal funds rate; it is the ultimate gauge for how much flow hits this sector. Just remember, this analogy has limits: crypto is a global, permissionless network, not a municipal utility.
#Macro #Crypto #Liquidity
