Global liquidity may matter more than the Fed’s next rate decision for crypto markets in September, according to Utkarsh Ahuja, founder and managing partner at Moon Pursuit Capital.

In a note shared with Cryptoprowl, Ahuja said crypto could enter another period of volatility or consolidation next month, but said a pullback would not necessarily mark the beginning of a broader downturn. Instead, weaker prices could help reset positioning, which could leave markets in better shape for the fourth quarter.

“Monetary policy, inflation, global money supply, credit creation and financial conditions are becoming increasingly important to the direction of risk assets,” Ahuja wrote. “Crypto sits particularly close to…