Beginner Why long-term crypto holders borrow against assets instead of selling A strategic guide to liquidity management, capital preservation, and the real tradeoff between selling and borrowing crypto Open guide 
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Bitcoin continues to follow the liquidity plus the aggregation of central bank balance sheets
Japan and China central bank balance sheets continue to expand and offset the quantitative tightening by Europe, UK and US.
Quick Take
- As the global world faces extreme inflation, central banks try to rein in inflation by decreasing their balance sheets (quantitative tightening) and increasing interest rates.
- The blue line is Bitcoin which has soared roughly 50% year to date.
- The orange line aggregates central bank balance sheets, including the US, EU, UK, Japan, and China.
- The red line is the fed net liquidity indicator; the formula is as follows; net liquidity = (fed balance sheet – (Treasury General Account + Reverse Repo)) / units.
- All three metrics have increased from their respective bottoms in October 2022 — while the balance sheet of the major central banks has increased to 756 trillion from roughly 706 trillion
- Japan and China have continued to increase their balance sheet — despite high inflation and undoing the work the US, EU, and UK are trying to achieve.
Market Cap $1.56T
24H Volume $41.85B
