Bitcoin is facing significant near-term pressure as global liquidity tightens, according to Russell Thompson, Chief Investment Officer at Hilbert Group. He anticipates a liquidity contraction of 20% to 25%, which could negatively impact risk assets, including Bitcoin, before potential U.S. policy interventions provide relief. Thompson expects the Treasury and Federal Reserve to implement measures such as supplementary leverage ratio reforms and Treasury General Account drawdowns to stabilize the market.
The current tightening comes after Bitcoin experienced a volatile six months, dropping from an all-time high of over $126,000 in October 2025 to around $75,600 today. This decline has been driven by a risk-off sentiment, ETF outflows, and broader macroeconomic pressures. Thompson believes that while short-term conditions may be challenging, a bullish medium-term outlook remains, with Bitcoin likely to recover significantly by year-end and potentially reach new highs by 2027.
For market professionals, the key takeaway is the importance of monitoring liquidity dynamics and U.S. policy actions, as these factors will be critical in shaping Bitcoin’s performance in the coming months.
Source: coindesk.com