Analysis of Changes in Global Liquidity and Cryptocurrency Market

An overview of the global liquidity changes and their impact on the cryptocurrency industry was recently provided by Philip Swift, the founder of LookIntoBitcoin. Cash inflows have a direct effect on the valuations of cryptocurrencies and assorted assets. The fluctuations in global liquidity present an encouraging scenario for investors. Let's explore Swift's insights.

Impact of Global Liquidity on Cryptocurrencies

Bitcoin's price is witnessing sustained interest above $71,000. The recent surge in BTC prices, enabling the surge in altcoins as well, can be attributed to the expanding global liquidity pool. Swift, the brains behind LookIntoBitcoin's on-chain data analysis platform, recently shared a fresh analysis, focusing on the shifts in global liquidity.

The global liquidity pool nears the $100 trillion mark. With this surge in liquidity, there arises a greater potential for bullish movements in risk markets. Swift's examination of the world's M2 money supply in conjunction with Bitcoin's price trends underscores their close correlation.

The US dollar-denominated M2 money supply currently stands at $94 trillion. At the time of Bitcoin's previous all-time high in 2021, this supply was $91 trillion. During the lows of the crypto bear market in late 2022, this figure dwindled to $85 trillion. Since then, it has surged by 10%, coinciding with the brisk growth of cryptocurrencies. Additionally, the uptrend in the M2 supply endures.

Future Prospects for Cryptocurrencies

Swift underscores the significance of monitoring liquidity supply in this bullish cycle and expresses contentment over reaching a new liquidity peak. His optimism regarding the medium and long-term prospects of cryptocurrencies is palpable. In his latest analysis, he remarked:

"The most crucial chart for this bullish phase has attained an all-time high. Are you geared up?"

In their recent market update, CryptoQuant stated:

"Conspicuously, significant investors are mirroring their 2020 actions by injecting nearly $1 billion into Bitcoin before its surge from $10,000 to $70,000. In 2020, Bitcoin lingered around $10,000 for six months with heightened on-chain activities, eventually transitioning to off-exchange transactions. Presently, despite subdued price fluctuations, on-chain activities remain robust, augmented by a daily inflow of around $1 billion through newly established whale wallets, likely reflecting institutional inflows into Bitcoin custodial solutions."

Originally published on COINTURK NEWS: Philip Swift Highlights Global Liquidity Changes