BTC Price Discovery is Almost a Done Deal Now that Global Liquidity is Entering Uncharted Territory.
Fasten your seatbelts, Bitcoin enthusiasts! The world's most famous cryptocurrency is poised for a potential surge, thanks to an all-time high in global liquidity.
The finding
A new analysis by Philip Swift, creator of LookIntoBitcoin, shows that global liquidity is approaching $100 trillion. This is the highest level ever recorded. In fact, Swift emphasizes this point, calling the overall M2 chart the "most important chart for this bull run" and asking:
"Are you ready?"
Currently, the global M2 money supply stands at $94 billion, **significantly surpassing the previous peak **and $3 billion higher than when Bitcoin reached its all-time high of $69,000 in late 2021.
Historically, Bitcoin and cryptocurrency markets are highly sensitive to global liquidity. In simpler terms, more money in circulation often translates into higher cryptocurrency prices. Swift tracks the overall M2 money supply (a measure of the money available in an economy) and compares it to Bitcoin price movements.
This data suggests that Bitcoin is poised for a significant price increase, especially considering that M2 has bounced a full 10% from its 2022 lows.
Not the only sign
This record liquidity is not the only indicator pointing to a Bitcoin bull run. Here are some additional bullish signals:
Bitcoin vs. U.S. M1 money supply
This comparison is coming out of a seven-year consolidation period, the longest in Bitcoin history. This break suggests significant price increases are on the horizon.
Investor trends
CryptoQuant's analysis reveals similarities between investor behavior now and in 2020, just before a major Bitcoin run.
Institutional interest
Large investors are reportedly adding approximately $1 billion to Bitcoin daily, mirroring their actions in 2020 before the price skyrocketed from $10,000 to $70,000.
Bitcoin ETF inflows
Investment products such as U.S. spot Bitcoin ETFs are experiencing their second-highest daily net inflows ever, indicating growing institutional interest.
With global liquidity reaching record levels and several other bullish indicators in play, the future looks bright for Bitcoin. While there are no guarantees, all signs point to a possible continuation of the current bull run.
Remember: The cryptocurrency market remains volatile and prices can fluctuate rapidly. Do your own research before investing and never invest more than you can afford to lose.
Source: CoinTelegraph.