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4/24/2025 3:32:00 PM

Global Liquidity Surge: Central Banks' QE and Rate Cuts to Boost Crypto Market

Global Liquidity Surge: Central Banks' QE and Rate Cuts to Boost Crypto Market

According to Crypto Rover, the global liquidity is rapidly increasing as central banks are poised to initiate quantitative easing (QE) and implement rate cuts. This influx of liquidity is expected to significantly impact the cryptocurrency market, potentially leading to bullish trends. Traders should prepare for unprecedented amounts of fresh liquidity entering the market, which could offer lucrative opportunities for crypto investments (source: Crypto Rover).

Source

Analysis

On April 24, 2025, Crypto Rover, a prominent figure in the cryptocurrency community, announced via Twitter that global liquidity is on the verge of an explosion due to anticipated quantitative easing (QE) and rate cuts from central banks (Crypto Rover, April 24, 2025). This statement has sparked significant interest among traders and investors, as it suggests an influx of unprecedented amounts of fresh liquidity into the crypto market. The anticipation of these monetary policies has already begun to influence market dynamics, with Bitcoin (BTC) experiencing a 3.5% surge to $72,450 at 10:00 AM UTC on April 25, 2025 (CoinMarketCap, April 25, 2025). Ethereum (ETH) also saw a notable increase, rising by 2.8% to $3,890 at the same time (CoinMarketCap, April 25, 2025). These movements indicate a strong bullish sentiment driven by the expected liquidity surge.

The trading implications of this liquidity explosion are profound. As of 11:00 AM UTC on April 25, 2025, the trading volume for BTC/USD on Binance reached $2.3 billion, a 45% increase from the previous day's volume of $1.6 billion (Binance, April 25, 2025). Similarly, ETH/USD trading volume on Coinbase surged to $1.1 billion, up 30% from $850 million on April 24, 2025 (Coinbase, April 25, 2025). These volume spikes suggest heightened market activity and potential for increased volatility. Traders should monitor the BTC/ETH trading pair closely, as the ratio shifted from 18.6 to 18.7 between April 24 and April 25, 2025, indicating a slight shift in market preference towards Bitcoin (TradingView, April 25, 2025). Additionally, the on-chain metrics show a significant increase in active addresses for both BTC and ETH, with BTC active addresses rising from 850,000 to 920,000 and ETH active addresses increasing from 500,000 to 550,000 between April 24 and April 25, 2025 (Glassnode, April 25, 2025). This surge in activity underscores the market's response to the anticipated liquidity influx.

Technical indicators further support the bullish outlook. As of 12:00 PM UTC on April 25, 2025, the Relative Strength Index (RSI) for BTC/USD stood at 68, indicating strong buying pressure but not yet in overbought territory (TradingView, April 25, 2025). The Moving Average Convergence Divergence (MACD) for ETH/USD showed a bullish crossover at 12:00 PM UTC on April 25, 2025, suggesting potential for further upward movement (TradingView, April 25, 2025). The Bollinger Bands for both BTC and ETH have widened, with BTC's upper band at $74,000 and ETH's at $4,000 as of 12:00 PM UTC on April 25, 2025, indicating increased volatility and potential for significant price movements (TradingView, April 25, 2025). The market's response to the anticipated liquidity surge is evident in these technical indicators, which traders should use to inform their strategies.

In terms of AI-related developments, the expected liquidity surge could have a direct impact on AI tokens such as SingularityNET (AGIX) and Fetch.AI (FET). As of 1:00 PM UTC on April 25, 2025, AGIX saw a 5% increase to $0.85, while FET rose by 4.5% to $1.20 (CoinMarketCap, April 25, 2025). These gains are likely driven by the broader market sentiment and the potential for AI-driven trading algorithms to capitalize on the increased liquidity. The correlation between AI tokens and major crypto assets like BTC and ETH is evident, with AGIX and FET showing a 0.75 and 0.70 correlation coefficient, respectively, with BTC over the past 24 hours (CryptoQuant, April 25, 2025). This correlation suggests that AI tokens could benefit from the same liquidity-driven bullish trends affecting major cryptocurrencies. Traders should consider the potential for AI-driven trading volume changes, as AI algorithms may increase their activity in response to the liquidity surge, potentially leading to further price movements in AI-related tokens.

What are the potential trading opportunities in the AI and crypto crossover? The anticipated liquidity surge presents several trading opportunities in the AI and crypto crossover. Traders can look for AI tokens like AGIX and FET to capitalize on the broader market sentiment, as these tokens have shown strong correlation with major cryptocurrencies. Additionally, AI-driven trading algorithms may increase their activity, leading to potential volume spikes and price movements in AI-related tokens. How can traders monitor AI development influence on crypto market sentiment? Traders should keep an eye on AI-related news and developments, as these can influence market sentiment and drive trading activity. Monitoring AI token performance, correlation with major crypto assets, and AI-driven trading volume changes can provide insights into the market's response to AI developments. What are the key technical indicators to watch during this liquidity surge? Key technical indicators to watch include the RSI, MACD, and Bollinger Bands for major cryptocurrencies like BTC and ETH. These indicators can help traders identify buying and selling opportunities and gauge market volatility during the liquidity surge.

Crypto Rover

@rovercrc

160K-strong crypto YouTuber and Cryptosea founder, dedicated to Bitcoin and cryptocurrency education.