Global M2 liquidity is a crucial market indicator, influencing sectors including cryptocurrencies. In December 2024, liquidity peaked, aligning with a local altcoin market high. Now, with liquidity on the rise, conditions are favorable for altcoins.
Significance of Global M2 Liquidity
M2 global liquidity is vital for the performance of risk assets, such as cryptocurrencies. The peak in December 2024 coincided with a local top in the altcoin market. The current rise in liquidity has sparked speculation about the potential rise in altcoins.
Altcoins Lag Behind Trends
Altcoins usually follow macroeconomic trends, like liquidity expansion, with some delay. Increasing liquidity typically leads to greater investor confidence, higher trading volumes, and stronger price actions for risk assets. If history repeats, altcoins could be on the verge of another upward movement.
Altcoin Projections
If M2 liquidity continues its upward trend, the altcoin market could experience a fresh rally. Investors should monitor liquidity trends, Bitcoin’s price movement, and general market sentiment. While no prediction is guaranteed, the rising liquidity suggests that a bullish phase may be imminent for altcoins.
As global M2 liquidity continues to rise, altcoins could find new opportunities. Investors are advised to stay attentive to changing market sentiments and trends.
