U.S. Government Reopens, Crypto Braces for Liquidity Surge and Fed Rate Cut Uncertainty
The U.S. government has ended its 43-day shutdown, setting the stage for significant financial market shifts. Macro analyst Raoul Pal predicts a liquidity wave from resumed Treasury General Account (TGA) spending and the Federal Reserve's expected halt to Quantitative Tightening in December. These developments could weaken the U.S. dollar and bolster risk assets, including cryptocurrencies.
Pal highlights regulators' likely use of temporary liquidity tools to prevent year-end funding squeezes. Such measures would further amplify market liquidity, creating favorable conditions for crypto assets. The convergence of government spending, central bank policies, and global stimulus presents a pivotal moment for digital asset markets.