Liquidity Heatmap Strength: Navigating Q4 Momentum

Our liquidity heatmap continues to show strength and resilience this past week, with clustering green plots indicating positive momentum.

A similar pattern emerged around this time last year, where market speculation was followed by a timely surge in liquidity.

This momentum comes amid stabilizing bond market conditions, highlighted by a decline in the MOVE index, which has supported risk-on sentiment.

However, potential risks such as rising inflation and central bank policy shifts should be monitored closely as they could influence the trajectory of liquidity into the future.

Looking ahead, we anticipate more liquidity inflows in Q4 as per our AE Global Liquidity seasonality data, which could provide a supportive backdrop for major assets, including Bitcoin.

At this point, any dips moving forward should be treated as strategic buying opportunities.

The stage appears set for a promising transition into 2025, where continued liquidity dynamics will likely play a critical role.