Blue Owl Liquidity Crisis Could Trigger Bitcoin’s Next Bull Market

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[Cotun] "Blue Owl Liquidity Crisis Could Trigger Bitcoin’s Next Bull Market"

According to cryptocurrency media outlet CoinDesk, private equity and private credit manager Blue Owl Capital has begun selling $1.4 billion worth of assets to meet redemption requests, raising speculation that the situation could trigger the next bull market for Bitcoin (BTC). Following the announcement, OWL shares fell about 14% on a weekly basis and are down more than 50% year-to-date. Mohamed El-Erian, former CEO of PIMCO, warned that this could be a “canary in the coal mine” similar to the collapse of Bear Stearns in 2007. During the 2008 financial crisis, the Federal Reserve’s zero interest rate policy and quantitative easing (QE) later provided the backdrop for Bitcoin’s creation and its long-term bull run. Likewise, during the 2020 COVID-19 crisis, massive liquidity injections were followed by Bitcoin surging from below $4,000 to over $65,000.

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