- Global Liquidity Movements Could Trigger a New Rally
- The Strength and Weakness of the US Dollar Will Also Determine Bitcoin’s Direction
Real Vision analyst Jamie Coutts indicated that a significant rise is imminent for Bitcoin (BTC). According to him, one of the most important factors that could drive the price of the largest cryptocurrency up is the acceleration of global liquidity momentum, which historically prepares a favorable ground for Bitcoin.
Global Liquidity Movements Could Trigger a New Rally
Coutts emphasized that this activity in global liquidity coincides with the 'froth' in the launch of exchange-traded funds (ETFs) and the withdrawal of overly leveraged positions from the market. According to him, this indicates a scenario that could herald the major rises Bitcoin has made in the past.
The analyst reminded that in the last decade, Bitcoin hit bottom a few months before the global money supply hit bottom and then made a significant rise. He added that a mid-term correction was observed after these rises.
The Strength and Weakness of the US Dollar Will Also Determine Bitcoin’s Direction
Another critical factor determining the direction of Bitcoin’s price is the strength or weakness of the US dollar. The US Dollar Index (DXY) is an indicator that measures the value of the US dollar against other major global currencies.
Coutts noted that Bitcoin experienced its fastest rise during periods when the US dollar lost value. Currently, the DXY is at 102.55, approximately a 4% drop from its peak level reached in April 2024.
The Real Vision analyst stated that the weakening of the US dollar is coordinated by the Federal Reserve (Fed) and indicated that this situation signals that global liquidity is being injected into the market. Coutts considers this an important development that could ignite a rise for Bitcoin.
In conclusion, Real Vision analyst Jamie Coutts noted that the acceleration of global liquidity and the weakening of the US dollar are key factors for a significant surge in Bitcoin. Historical data suggests that these moments create favorable conditions for the rise in the cryptocurrency's price.
