Bitunix Analyst: Currency Market Pressure Heating Up, Fed May Resume Asset Purchases, BTC More Attractive Than Gold After Deleveraging Storm

November 7th: Several Wall Street banks have issued warnings that the tense situation in the U.S. money market may experience a re-escalation, which may prompt the Fed to intervene early. Although the short-term funding rate has temporarily become stable, the spread between the repo rate and the fed funds rate remains high, indicating a further deterioration in market liquidity. Analysts pointed out that if the pressure continues, the Fed may need to restart its asset purchase program in order to prevent the financial system's reserve from falling into a danger zone. Meanwhile, a report from JPMorgan shows that after the recent deleveraging storm, Bitcoin has made a significant recovery from overleveraged positions. After adjusting for volatility, it 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. Bitcoin may have significant upside potential in the next 6 to 12 months. Bitunix analyst's 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 the turning points of policy expectations is brewing a structural rebound. The short-term support is at $100,500, and the resistance range is $103,500 - $104,500. If the 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.