Fu Peng: Cryptocurrency assets are deeply tied to global liquidity and are currently in a shrinking market

Fu Peng, Chief Economist of Xinhuo Group, gave a speech at WIKIEXPO, stating that mainstream cryptocurrency assets such as Bitcoin are deeply tied to global core liquidity, and the current market is in a shrinking market caused by liquidity tightening. In 2021, global liquidity reached a temporary peak, with November last year being a critical turning point. The Federal Reserve's balance sheet reduction reached a critical point, and global funds began to shrink overall. High elasticity and speculative assets such as cryptocurrencies were given priority for reduction.