Bitcoin Set for Week of Gains as Fed Liquidity Recovers, Banmuxia Says

COINOTAG News highlights comments from Chinese crypto analyst Banmuxia, who argues that liquidity normalization hinges on the Federal Reserve’s policy stance. If the Fed signals balance sheet expansion, broader markets—including crypto—could stabilize.

Fed policy expectations suggest this environment may spark a week of broad gains across U.S. stocks, the crypto space, and other risk assets, contingent on rate moves aligning with liquidity objectives.

Banmuxia also cites a November report noting that a shift from balance-sheet contraction toward expansion could restore liquidity to pre-tight levels, with references to patterns seen in prior years. The actual trajectory will depend on forthcoming policy signals.

Readers are advised to monitor official Fed communications and macro data, applying prudent risk controls as market outcomes hinge on policy actions and verifiable data rather than speculative forecasts.