For months, retail traders have been eagerly ready for the “All Cash Pump” — a second when most cryptocurrencies surge in worth. However up to now, it hasn’t occurred. Some are beginning to suppose it’d by no means come. Nonetheless, historical past tells us in any other case. Up to now, whether or not it was 2016, early 2017, or later cycles, the All Cash Pump has all the time arrived, particularly after Bitcoin halving occasions.
The delay this time has left many pissed off. One large cause? Liquidity dilution. Meme cash have been stealing the highlight, pulling cash away from extra strong, long-term tasks. When individuals lose cash on meme cash, they’ve much less to put money into altcoins with actual potential. This slows down the market’s total progress.
The Federal Reserve (the Fed) performs an enormous function within the crypto market. When the Fed raises rates of interest, it tightens the cash provide, making it more durable for riskier property like Bitcoin and altcoins to develop. This occurred in 2017 when price hikes led to a bear market in 2018. On the flip facet, when the Fed lowers charges and pumps cash into the financial system (like in 2020–2021), crypto tends to increase.
