Bitfinex Exec Predicts Liquidity Surge for Stocks, Crypto as US CPI Cools

Bitfinex Exec Predicts Liquidity Surge for Stocks, Crypto as US CPI Cools

Bitfinex Exec Sees 'Extreme' Liquidity Boost for Stocks, Crypto as US CPI Cools to 3% The lower-than-expected U.S. consumer price index (CPI) for June has increased the market's anticipation for a rate cut in September, which could boost liquidity and risk appetite in both the stock and crypto markets, according to Jag Kooner, head of derivatives at Bitfinex. Kooner told Crypto Briefing that the CPI data, which showed inflation cooling to 3%, could lead to a "liquidity deluge" in the markets. "This could lead to extreme liquidity in the coming weeks and months," he said. "We could see a significant increase in risk appetite, which would be positive for both stocks and cryptocurrencies." Kooner also noted that the recent decline in volatility in the crypto market could be a sign that institutions are preparing for a period of increased liquidity. "Institutions are typically more comfortable investing in markets when volatility is low," he said. "The recent decline in crypto volatility could be a sign that institutions are preparing to allocate more capital to the space." The positive outlook from Kooner comes at a time when both the stock and crypto markets have been struggling. The S&P 500 index has fallen by more than 20% from its all-time high, while the total crypto market cap has lost more than $1 trillion since November. However, Kooner believes that the recent CPI data could be a turning point for both markets. "I think this is a very positive development for both stocks and cryptocurrencies," he said. "I expect to see a significant increase in liquidity and risk appetite in the coming weeks and months."