The World Trade Organization (WTO) has projected a significant slowdown in global merchandise trade growth, anticipating a drop from 2.4% in 2024 to just 0.5% by 2026. This 72% decline is attributed to factors such as tariffs, weak demand, and diminishing inventories, which are constraining cross-border trade flows and tightening liquidity.
This liquidity squeeze is impacting Bitcoin, which remains range-bound between $119,000 and $126,000. Large holders are maintaining their positions, and futures activity has plateaued around $42.7 billion. Analysts indicate that Bitcoin's potential for a future rally hinges on a resurgence in liquidity, possibly driven by changes in Federal Reserve policy or increased ETF inflows.
WTO Predicts 72% Decline in Global Trade Growth, Affecting Bitcoin Liquidity
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