A surprise housing and mortgage policy move by Donald Trump has reignited debate about liquidity conditions in U.S. markets, with some analysts saying the shift could indirectly support assets such as Bitcoin.
A surprise housing and mortgage policy move by Donald Trump has reignited debate about liquidity conditions in U.S. markets, with some analysts saying the shift could indirectly support assets such as Bitcoin.
that the administration is preparing measures that include buying up to $200 billion in mortgage-backed securities, a step designed to ease pressure in the U.S. housing market, which has remained largely stalled since interest rates began rising.
Lower mortgage rates and improved credit availability could help restart housing transactions, refinancing activity, and broader capital flows across the economy.
The housing initiative also includes an executive move to restrict large investment firms from purchasing single-family homes. Trump said homes should be owned by people, not corporations, a message widely seen as targeting institutional buyers such as Blackstone.
The combination of bond purchases and ownership limits could gradually unlock activity in a sector that has been frozen for years.
Davis said the housing measures, falling interest rates, and restrictions on corporate home buying together point to a potential “unfreezing” of U.S. housing.
He said a recovery in housing could increase money movement across the economy over time, a development that historically supports risk assets when liquidity improves.
Bitcoin has been trading in a narrow range as markets digest the macro news. Davis added that the price is currently holding near its 20-day exponential moving average, a short-term level often watched for signs of momentum.
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“The upside potential here is bouncing off this 20-day EMA retest, which was the entry right around here. So, a potential 30% price move to the upside back to the 200-day if we bounce successfully off the 20-day EMA. That’s the trade I’m looking at here,” he said.
The analyst is also keeping an eye on the pending U.S. Supreme Court decision on Trump-era tariffs, which could add short-term volatility. At the same time, expectations for further interest-rate cuts and an upcoming Federal Reserve leadership change later this year remain in focus.
