BlockBeats News, November 7th: Several Wall Street banks have warned that the tense situation in the U.S. money market may re-escalate, potentially prompting the Fed to intervene early. Although the short-term funding rate has temporarily stabilized, the spread between the repo rate and the fed funds rate remains high, reflecting a further deterioration in market liquidity. Analysts point out that if the pressure persists, the Fed may need to restart its asset purchase program to prevent the financial system’s reserve from falling into a danger zone.
Meanwhile, a JPMorgan report shows that after the recent deleveraging storm, Bitcoin has significantly recovered from overleveraged positions and, after adjusting for volatility, is relatively “extremely cheap” compared to gold. Strategist Panigirtzoglou noted that the open interest ratio of perpetual contracts has returned to the early-year average, suggesting that the short-term selling pressure has eased, and Bitcoin may have significant upside potential in the next 6 to 12 months.
Bitunix analyst view: The current macro and liquidity contradictions are intertwined—If the Fed is forced to restart QE, risk assets will enter a valuation repair cycle. In the crypto market, the end of BTC deleveraging coupled with policy expectations turning points is brewing a structural rebound. Short-term support is at $100,500, with a resistance range of $103,500–$104,500. If policy direction clearly shifts, funds may move from hedging to another risk-taking cycle, becoming the beginning of a new round of market liquidity repricing.
