Analysts predict BTC rally, citing inevitable Fed liquidity boost

An analysis suggests that strong U.S. economic growth and expanding liquidity will drive further gains for Bitcoin, which is currently trading around the $70,000 level. According to DL News, London Crypto Club analysts David Brickell and Chris Mills predict a bull market for both stocks and crypto for several months, viewing the U.S. Federal Reserve's liquidity provision through Treasury purchases as the key driver of a rebound. They noted that while crypto prices have been suppressed by President Donald Trump's nomination of the hawkish Kevin Warsh as Fed Chair, an expansion of Fed liquidity is ultimately unavoidable. The analysts argued that when money markets come under pressure, expanding the Fed's balance sheet becomes a necessity rather than a choice. They added that even if the Fed were to attempt shrinking its balance sheet, deregulation would allow private financial institutions to take its place, ensuring that overall market liquidity would not decrease.