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Philip Swift, the founder of LookIntoBitcoin, recently highlighted changes in global liquidity. Cash inflows affect the prices of cryptocurrencies and other assets. The change in global liquidity creates a motivating picture for investors. What does Swift say? Here are the details.
Global Liquidity and Crypto
Bitcoin price continues to find buyers above $71,000. The recent BTC increase, which allows for more altcoin rises, is also fueled by the growth in global liquidity. Philip Swift, the founder of the on-chain data platform LookIntoBitcoin, published a new analysis yesterday, drawing attention to the change in global liquidity.
Global liquidity has approached $100 trillion. Amid this expansion in liquidity, there is more potential for risk markets to rise. Swift, who examines the world’s M2 money supply and compares it with BTC price movements, highlights the connection between them.
The M2 money supply in US dollars is currently at $94 trillion. When Bitcoin broke its previous all-time high in 2021, this supply was only $91 trillion. In late 2022, when cryptocurrencies hit the bottom of bear markets, this figure had dropped to $85 trillion. Since then, it has increased by 10%, and coincidentally, cryptocurrencies have grown faster. Moreover, the growth in the M2 supply continues.
The Future of Cryptocurrencies
Swift believes that one of the most important things to watch for this bull run is the liquidity supply, and he is quite happy to see an all-time high here. He is also very hopeful about the medium and long-term future of cryptocurrencies for this reason. In his latest analysis, he wrote:
“The most important chart for this bull run has reached an all-time high. Are you ready?”
CryptoQuant wrote the following in its latest market report:
“Indeed, major investors are moving in parallel with 2020 by adding about $1 billion to Bitcoin before it rose from $10,000 to $70,000. In 2020, Bitcoin hovered around $10,000 for six months with high on-chain activity and later emerged as OTC deals. Now, despite low price volatility, on-chain activity remains high with $1 billion added daily by new whale wallets, likely in the form of Bitcoin purchases entering custodial wallets from institutional investors.”
