Bitcoin’s Fed Paradox: Why the King Crypto Stalls Despite Liquidity Surge

Central banks flood the system, but Bitcoin's price action remains stuck in the mud.

The Liquidity Mismatch

Wall Street's playbook says easy money lifts all assets. Digital gold isn't reading the script. While traditional markets cheer the Fed's latest move, Bitcoin's chart tells a different story—a stubborn consolidation that defies textbook economics. It's the ultimate stress test for the 'digital gold' thesis.

Decoupling or Just Delayed?

This isn't a liquidity problem; it's a narrative one. The market's wrestling with a simple question: is Bitcoin broken, or is it simply waiting for the old-world money to realize where the real store of value lives? Every day of sideways action fuels the debate between skeptics and true believers.

The Institutional Waiting Game

Watch the order books, not the headlines. The real signal won't come from a press conference, but from a sustained volume spike on major exchanges. Until then, the market's in a holding pattern—proving once again that in finance, the only thing predictable is the industry's talent for overcomplicating the obvious.

Coinbase Institutional notes that while the Fed’s end of quantitative tightening and return to the bond market have improved liquidity, a potential positive for crypto, Bitcoin continues to struggle. Key bull market support has been broken, options sentiment is turning bearish, and long-term whales are still selling. Spot ETFs are seeing large outflows, and treasury activity (DATs) has slowed. Despite a more favorable macro environment, Bitcoin faces multiple pressures, keeping the market cautious and uncertain.