Bitcoin Has Entered Its Make-or-Break Period as Macro Uptrend Looms Amid a Liquidity Bazooka From the Federal Reserve

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Bitcoin (BTC), as an asset with one of the highest volatility, offers a unique risk-and-reward calculus to those brave enough to delve in. About a week ago, the world's largest cryptocurrency by market capitalization was firmly perched on the precipice of reclaiming its macro uptrend. However, following the CFTC's hard-hitting indictment of Binance yesterday, the bears are again gaining the upper hand. Is this budding bearish sentiment sufficient to derail Bitcoin's near-term bullish thesis? Let's find out.

Above, you will find the Federal Reserve's total assets, expressed in millions of dollars and spanning the year-to-date period.

Next, note Bitcoin's price action so far this year. While the world's premier cryptocurrency notched significant gains during the beginning of the year, coinciding with a broad-based rally in risk assets amid expectations of an imminent Fed pivot, Bitcoin soon entered a consolidation pattern that lasted from the 14th of January till the 12th of March.

New Fed bal sheet just dropped

Added $95B since last week. That fully cancels the *monthly* QT they're doing.

And over the past 10 days they've canceled about two thirds of the entire QT they did since they started the rolloff a year ago. pic.twitter.com/wSvrsstLeD

— Dan McArdle (@robustus) March 23, 2023

Thereafter, as the Federal Reserve unleashed a veritable liquidity bazooka to combat the banking crisis that has engulfed mid-sized banks in recent days following the collapse of the Silicon Valley Bank (SVB), Bitcoin ripped higher.

The chart above illustrates this positive correlation that exists between Bitcoin