Rollercoaster of liquidity and investor emotions throughout the day – 5 Feb 2025 – Crypto Market Today

So, here’s what’s going on in the crypto and financial world today. It’s kind of a mess, but if you zoom out, there’s a bigger game at play.

1. The Political Circus & Hidden Agendas

You know how politicians love to stir up drama? Right now, Trump is doing just that—talking about tariffs, blaming Iran, and making unpredictable statements. But the real deal? It’s likely a distraction from the economy slowing down.

• Factory orders are weak, meaning businesses aren’t ordering as much, which is a bad sign for economic growth.
• The U.S. debt situation isn’t great, and they can’t just keep borrowing forever.
• Iran somehow ended up leading the UN Human Rights Council, which is super controversial, so the U.S. just decided to leave.
• Basically, the key takeaway is: watch what they’re not saying—the real moves happen behind the scenes.

2. What’s Happening in the Markets Today

Some big economic reports are coming out, and that’ll shake things up a bit:

• Job market reports are expected to be weak, which isn’t great for economic confidence.
• China’s central bank is messing with liquidity, which should calm things down for a bit.
• Later in the day, there could be a dip when investors start selling.
• And then, as usual, the Fed might do something that freaks everyone out, causing another drop before things settle again.

So, expect some ups and downs, but nothing unexpected if you know how these things work.

3. Gold is Winning (Because Fiat Money is Losing)

Gold prices are climbing, and that’s a sign that people don’t trust paper money as much anymore. Why?

• Governments keep printing money, making cash worth less over time.
• The economy isn’t actually growing as fast as they claim.
• Inflation is worse than they admit, but they’re trying to hide it.
• Debt is getting out of control.

Long story short: gold is the safe bet when things feel unstable.

4. Bitcoin is Dropping, But That’s Part of the Plan

Bitcoin’s price is down, and a lot of people are freaking out. But here’s the catch: the U.S. government might actually be planning to buy a ton of Bitcoin over the next five years—like, 200,000 BTC per year.

What does that mean?

• Right now, they’re probably keeping prices low so big players can accumulate more before announcing anything official.
• In the short term, Bitcoin might look weak, but in the long run, this could be a setup for a massive rebound.

5. What to Do? Play Smart.

• Bitcoin’s dip is temporary. If you believe in its future, don’t let the panic get to you.
• Gold is still a solid hedge if you want stability.
• Fiat money (USD, EUR, etc.) is slowly losing value, so don’t just sit on cash.
• The big guys (governments and institutions) always load up on assets before making major announcements.

Final Thoughts

The financial world is basically a game of chess, and the people in charge are always a few moves ahead. The economy isn’t as strong as they say, inflation is worse than it looks, and big players are positioning themselves before the next big move. If you stay patient and think long-term, you won’t get caught up in the short-term noise.

So yeah—keep an eye on the real signals, not just the headlines.

Alright, let’s break this down in a simple way. This is basically a timeline of expected market movements throughout the day, based on key financial events. Think of it like a weather forecast, but for trading. In UTC+6 timezone.

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08:00 – 10:00 (Market is Calm – Green)

• This is the “calm before the storm.”
• No major economic reports are out yet, so there’s not much movement in the market. Traders are waiting to see what happens next.

11:00 – 15:00 (Still Green – China Steps In)

• China’s central bank (PBOC) is doing its thing—probably injecting liquidity (which means they’re making sure there’s enough money flowing in the market).
• This stabilizes things, keeping the market in a positive or neutral state.

16:00 – 18:00 (Red – Market Drops)

• Some traders might start selling assets here.
• This could be due to nervousness about upcoming economic data or just short-term profit-taking.
• Expect a bit of a dip.

19:00 – 22:00 (Green Again – ADP Report Helps)

• ADP (a report that tracks private sector jobs) is expected to show positive numbers.
• That’s good news for the economy, so the market reacts positively.

22:00 – 00:00 (Red – Market Drops Again)

• The Federal Reserve (the U.S. central bank) might say or do something that makes investors nervous—like hinting at higher interest rates or pulling back liquidity.
• When the Fed makes moves that tighten financial conditions, the market usually reacts negatively.

01:00 – 08:00 (Green – Liquidity Boosts Market Again)

• The Reverse Repo (RRP) rate drops below $80 billion. That’s a fancy way of saying there’s more liquidity in the system.
• More liquidity means more money available for trading, which helps support the market and push prices up.

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Key Takeaways

• Morning is mostly stable. No big moves early on.
• Midday is influenced by China. If they add liquidity, markets stay green.
• Late afternoon could see selling pressure. Traders might take profits.
• Evening gets a boost from jobs data. But…
• Later at night, the Fed might mess things up. Investors get nervous about central bank actions.
• Overnight, liquidity increases. That helps the market recover.

It’s basically a rollercoaster of liquidity and investor emotions throughout the day.