
Bitcoin – How Global Liquidity Will Affect BTC’s Bull Market Trend
Global liquidity highlights Bitcoin’s sensitivity to economic shifts, driving potential bullish momentum amidst quantitative tightening and renewed optimism.
As the cryptocurrency market continues its recent upward trajectory, a closer examination of global liquidity trends may hold the key to understanding the direction of this rally. It appears that decreasing demand for U.S. Treasury Securities could signal a capital shift towards riskier assets, including Bitcoin.
Currently, Bitcoin’s Social Volume is trending upwards, though it remains below the levels seen during the 2021 bull market. This indicates growing interest as Bitcoin recovers, but not yet a euphoric market state. The delayed response in Social Volume corresponds with the slight lag in Bitcoin’s reaction to M2 liquidity inflows.
Recent data shows a steady rise in active addresses, reflecting renewed interest among traders and investors. This trend supports the hypothesis that liquidity inflows drive market activity, even if delayed.
Source: ambcrypto.com