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Bitcoin – How global liquidity will affect BTC’s bull market trend
Global liquidity has consistently influenced asset prices, including Bitcoin’s (BTC). An analysis of M2 (a measure of money supply) shows a correlation with Bitcoin’s growth, although with a slight delay. With the Federal Reserve continuing its Quantitative Tightening (QT) policy and declining demand for U.S. Treasury securities (UST), there is potential for capital to shift toward riskier assets like BTC.
Bitcoin’s price movement corresponds with global M2 Day-over-Day (DoD) 30DMA. A significant uptick in recent data shows a steady rise in active addresses, reflecting renewed interest among traders and investors. This pattern supports the notion that liquidity inflows drive market activity, albeit delayed.
The slight increase in global M2 liquidity, coupled with declining UST demand, has provided a foundation for BTC’s growth despite the ongoing QT policy. The interplay of global liquidity, market sentiment, and network activity will remain crucial to the cryptocurrency’s trajectory.
In the event of systemic risks prompting Federal Reserve intervention, it is possible that BTC could experience an accelerated bull run driven by renewed capital inflows.
Source: ambcrypto.com
