Record High Global Liquidity Poised to Boost Bitcoin's Bull Run, Analysis Concludes
Summary:
Bitcoin's ongoing bull run could get a boost due to a record high in global liquidity, according to a new analysis by Philip Swift of LookIntoBitcoin. The analysis indicates a near $100 trillion global liquidity, with Bitcoin and other cryptocurrencies predicted to benefit from this in 2024. Large investors are infusing about $1 billion into Bitcoin, consistent with trends observed in 2020. Furthermore, U.S. spot Bitcoin ETFs saw their second largest net inflows on June 4. It is advisable for readers to conduct their own research since all trading and investment moves come with risks.
The ongoing bull run of Bitcoin could see a further surge due to an all-time high in international liquidity, as indicated by a new analysis published by Philip Swift, founder of LookIntoBitcoin, a platform for on-chain data. The analysis, published on June 5, describes a near $100 trillion global liquidity situation. Notoriously influenced by worldwide liquidity trends, Bitcoin and other cryptocurrencies are predicted to have a favorable market environment in 2024.
Swift’s platform monitors the international M2 money supply and evaluates it against Bitcoin's price movements. Currently, M2 (in US dollars) sits at a record $94 trillion, a $3 trillion increase since Bitcoin recorded its previous all-time high of $69,000 late in 2021. Post a $85 trillion dip in late 2022, which coincided with the lowest point of the crypto bear market, M2 has bounced back a full 10%.
Recent liquidity-based findings have similarly forecasted a positive direction for Bitcoin's future. A comparison of Bitcoin to the U.S. M1 money supply shows it on the brink of breaking out from a seven-year period of consolidation, which hints at a potential significant upside.
As financial conditions improve, more studies point towards growing interest from institutional investors in cryptocurrencies and risk assets. In the most recent "Weekly Report" issued to Cointelegraph by on-chain analytics platform CryptoQuant, they noted similar patterns of investor behavior back in 2020.
The report states, large investors are infusing about $1 billion into Bitcoin, which aligns with the 2020 trend seen before the rally from $10K to $70K. They pointed out that even with modest price volatility, daily on-chain activity remains high, registering additions of $1B by new whale investors, likely institutional investors buying Bitcoin.
CryptoQuant's report also emphasized the rise in inflows to U.S. spot Bitcoin exchange-traded funds (ETFs), which saw their second largest net inflows on June 4.
In disclaimer, this news article does not provide investment advice or recommendations. It is important that readers do their own independent research as all trading and investment moves come with associated risks.
Published At
6/6/2024 11:05:00 AM
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