Global Liquidity Could Drive Crypto Markets in September, Expert Says

Next month's crypto markets may be more influenced by global liquidity than the Federal Reserve's upcoming interest rate decision, according to Utkarsh Ahuja, founder and managing partner of Moon Pursuit Capital. In a note shared with CryptoProwl, Ahuja predicts crypto could experience either volatility or consolidation, but a pullback would not signal a broader downturn.

Instead, weaker prices might help reset positioning, potentially leaving markets better prepared for the fourth quarter. Ahuja emphasizes that monetary policy, inflation, global money supply, credit creation, and financial conditions play a growing role in risk assets' direction. Crypto stands out due to its global, 24/7 trading and responsiveness to liquidity and risk appetite shifts.

MEXC's Earn Plus program, Kalshi's international expansion, Bitmine's Ethereum purchases, and Bitcoin's recent price surge above $80,000 all illustrate the potential impact of liquidity on the market. Ahuja suggests that Bitcoin's four-year cycle, driven by institutional adoption, could evolve without losing its character. If liquidity improves while leverage and positioning decrease, a September reset could set the stage for a more bullish quarter. As of now, Bitcoin is trading at $77,873 per token, experiencing only minor fluctuations.