Jamie Coutts, the lead digital asset analyst at Real Vision, asserts that the current upswing in the cryptocurrency market is far from over. According to him, the historical correlation between global money supply (M2) and the number of active addresses on the blockchain indicates further growth signals in the market.
Global Liquidity and Blockchain Interaction
Coutts emphasizes that global liquidity plays a crucial role in driving asset prices. He also notes that the increase in active blockchain addresses reflects adoption rates, suggesting that the parallel between these two indicators is a fundamental reference for monitoring market dynamics.
Jamie Coutts: “We know that global liquidity determines asset prices. We also observe that network activity, or adoption, forms the foundation of prices. When we align global liquidity with active blockchain addresses, both tell the same story: crypto possesses a high beta effect and structural growth potential. There is still a long way to go in this process.”
Cryptocurrencies May Surge
Coutts points out that liquidity is trending upwards, supported by the weakening dollar. He acknowledges that the world’s largest sovereign wealth fund is accumulating Bitcoin $84,040, noting that many developing countries with local crypto asset mining operations have been stocking BTC for over a year through sovereign wealth funds or affiliate institutions.
Jamie Coutts: “This trend will increase over time.”
Coutts’ assessments highlight the influential role of global liquidity and blockchain address activities on market prices. These data points indicate the structural growth potential and high volatility characterizing the crypto market.
The remarks signal that investors and market observers should closely monitor international monetary policies and digital asset strategies. Increased liquidity and the expansion of governments’ digital asset portfolios suggest that the market could become more dynamic in the future.
- Global liquidity impacts the cryptocurrency market.
- Active addresses reflect price dynamics, paving the way for greater surges in cryptocurrencies.
- Governments are interacting with cryptocurrencies through various methods, adding them to their balance sheets.