Liquidity Paradox: Credit Markets Hit Record Highs, While Bitcoin Markets Face Liquidity Crisis

2026-01-08 05:48:12

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The US credit market is performing strongly, with the New York Fed High-Yield Bond Deterioration Index dropping to a historic low of 0.06, indicating ample market liquidity and healthy corporate borrowing conditions. The high-yield bond ETF (HYG) increased by approximately 9% in 2025, while stocks, especially AI and large-cap tech stocks, continue to attract risk capital. However, Bitcoin capital inflows have stagnated, despite futures open interest reaching $61.76 billion, with prices consolidating around $91,000. CryptoQuant CEO Ki Young Ju pointed out that funds have shifted to stocks and gold rather than cryptocurrencies. Institutional investors holding 673,000 Bitcoins, such as MicroStrategy, have shown no signs of selling, and spot Bitcoin ETFs are encouraging long-term holding. Without significant catalysts—such as a Fed rate cut, clearer regulatory policies, or market dynamics after the halving—Bitcoin may face a prolonged period of consolidation, with limited upside potential and no imminent risk of a crash.

BTC1,98%

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