‘Bitcoin’s Most Important Chart for This Bull Run has Just Made a New ATH’, Expert Says

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Table of Contents

TL;DR

  • Global liquidity reaches a record near $100 trillion, generating optimism in the Bitcoin market.
  • Analyses by Philip Swift suggest that the increase in global liquidity could further boost the current bullish rally of BTC.
  • The growing activity of institutional investors in BTC, along with the adoption of ETFs, heralds a bullish future.

Global liquidity has reached a historic value close to $100 trillion, which has fueled bullish expectations in the Bitcoin market. A recent analysis by Philip Swift, creator of the on-chain data platform LookIntoBitcoin, reveals that the record in global liquidity could further boost the current bullish rally of BTC.

Bitcoin on the day of this story

Day open

$71,108

00:00 UTC

Past 7 days

+5.1%

from $67,652

Since the open

−7.7%

$65,664 · 15 Nov, 13:30 UTC

Record close

−2.7%

$73,072 · Mar 2024

Data: Binance, CoinGeckoLive Bitcoin price →

According to Swift, BTC markets are sensitive to global liquidity trends, and with it reaching unprecedented levels, current conditions could be exceptionally favorable for an increase in the price of the most important cryptocurrency. The analysis compares the evolution of global liquidity, measured by the M2 money supply, with the behavior of Bitcoin’s price, highlighting a close relationship between the two.

The new record in global liquidity coincides with a growing activity of institutional investors in the BTC market. Large capital inflows are being observed, reminiscent of market behavior in 2020, just before the increase in the price of BTC. Furthermore, the increase in institutional investment activity is a sign of growing interest and confidence in Bitcoin as an investment asset.

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Bullish Future for Bitcoin

Additionally, the analysis also highlights the key role that Bitcoin exchange-traded funds (ETFs) could play in this scenario. With the approval of ETFs, institutional investors have a safer and more accessible way to gain exposure to BTC, further catalyzing demand and boosting the price of the cryptocurrency.

In the current context, the scenario for the price of BTC looks promising. Although there are always risks and volatility in the crypto market, the combination of positive factors points to a possible bullish path for BTC in the coming years.

At the time of writing this article, Bitcoin is trading at just over $71,000. Its market capitalization is $1.4 trillion, both indicators have remained stable in the last session. On the other hand, the volume has decreased by 30% and is around $26.4 billion.

Sources and method. The data box is a snapshot taken when the story was published: price from CoinGecko's hourly series (or, if missing, our own daily close from Binance, Coinbase, Kraken or Blockchain.com); "Past 7 days" compares with the price one week earlier; the all-time high is CoinGecko's as it stood that day. Only "Since this story" uses the latest price, with its own time.

Notice. For information only; not investment advice.

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