Crypto-Follow logo Crypto-Follow logo
Seeking Alpha 2022-05-12 14:46:08

Bitcoin could extend drop to $15K amid tighter financial conditions, Stifel says

Bitcoin (BTC-USD) could drop even further to $15K as speculators weigh an environment of increasingly tighter financial conditions and sinking money supply, Stifel analysts Barry Bannister and Thomas Carroll wrote in a note Thursday. Over the past 24 hours, bitcoin is off another 10% to $28.7K. Y/Y growth in M2 money supply, a broad measure of money (i.e. cash and checking deposits) in circulation, has been decelerating from a peak of +27.5% on Feb. 22, 2021, compared with +8.6% as of April 4, as seen in the chart below. Furthermore, the analysts said bitcoin (BTC-USD) has much more downside that that of equities, which "thrive on excess liquidity," Bannister and Carroll said. Of course, that excess liquidity experienced after the Federal Reserve's extraordinary accommodative monetary policy is now drying up as the central bank pivots quickly to more hawkish actions. At the last Fed meeting, the Federal Open Market Committee had lifted the target

#
Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer