Global Markets Face Sell-Off Amid Liquidity Squeeze

Global markets, encompassing cryptocurrencies, equities, and precious metals, have undergone a significant sell-off attributed to a systemic liquidity squeeze rather than issues specific to individual assets. According to NS3.AI, interventions by the Federal Reserve aimed at stabilizing bank reserves have not alleviated market stress, as long-term interest rates remain elevated and financial conditions remain tight. This sell-off is indicative of mechanical deleveraging and uncertainty surrounding economic data. Volatility is anticipated to persist until more definitive policy or macroeconomic signals become apparent.