According to @Andre_Dragosch, BTC has not shown a stable correlation with Fed net liquidity as Bitcoin trended higher in 2025 despite weak Fed liquidity, indicating global money supply is the more relevant driver for BTC performance (source: X/@Andre_Dragosch, Nov 2, 2025). He adds that if the SOFR-FFR spread continues to widen, the Fed is likely to inject more liquidity, which is short-term risk-off and bearish but medium- to long-term bullish for BTC in an SVB-like funding-stress setup (source: X/@Andre_Dragosch, Nov 2, 2025). For trading, this implies prioritizing global money supply metrics over Fed net liquidity when modeling BTC beta and monitoring the SOFR-FFR spread to time potential risk-off shocks followed by a liquidity pivot (source: X/@Andre_Dragosch, Nov 2, 2025).

According to @rovercrc, the Federal Reserve's net liquidity has reached its highest point in 16 months, offering a positive outlook for Bitcoin (BTC) and the broader cryptocurrency market. Increased net liquidity typically boosts risk appetite among investors, eases financial conditions, and can indicate upcoming policy easing or interest rate cuts. This environment often leads to more capital entering financial markets, supporting higher M2 money supply growth, all of which are favorable for crypto asset prices. Traders may expect increased market activity and potential upward momentum for digital assets as a result of this liquidity surge (source: @rovercrc).