The recent rise in Bitcoin $103,028 prices has begun to show weak signs of recovery, influenced by global liquidity trends and their impact on investor sentiment. According to market analyses, the price of BTC is moving in parallel with the increase in global M2 money supply. This relationship offers significant insights into the future price movements of Bitcoin and its macroeconomic significance.
Liquidity Increase and Delayed Effect
Market analyst Matt Crosby has pointed out a strong correlation of over 84% between Bitcoin’s price and the global M2 liquidity level. Crosby notes that while the increase in liquidity does not directly impact Bitcoin’s price, the effect typically manifests with a delay of about 56 to 60 days.
Matt Crosby: “The delayed effect of liquidity injections on speculative assets provides crucial data for market analysis.”
Broader Macroeconomic Factors
This relationship between Bitcoin’s price and liquidity also appears to have a similar effect on traditional markets. Notably, the S&P 500 index shows a correlation of around 92% with global liquidity, indicating that macroeconomic expansion is a significant factor affecting all risk assets.
Market analyses suggest that during similar previous periods, Bitcoin’s price rose from $75,000 to over $85,000. Future projections indicate that surpassing the $108,000 mark may be possible, contingent upon the continuation of global liquidity increases.
Analysts highlight that monetary policy and liquidity injections do not yield immediate results; instead, they follow a systematic dispersion process. This situation allows investors to forecast price movements if they track macro data closely.
The rate of increase in M2 money supply in dollar terms offers investors an opportunity for more detailed assessments. After periods of temporary slowdown, liquidity increases have gained momentum, showing similar upward trends in Bitcoin and other assets.
Market analysts emphasize the importance of monitoring economic data for investment strategies. Data-driven analyses can provide more reliable predictions regarding future price movements.
Operating under dynamic economic conditions, the Bitcoin market continues to exhibit systematic patterns. Investors can adapt these patterns to their strategies by following global liquidity and economic data.