Bitcoin (BTC/USD) prices have been influenced by global liquidity, a dynamic revealed through analysis of data from 2017 to 2025.
Bitcoin's Historical Data and Achievements
Bitcoin reached its highest price at $82,852.43, starting from $1,400,000 in 2017. Research shows its price increased from $1,500,000 in 2022 to the current $84,133.87, accompanied by changes in global liquidity from 144 trillion in 2021 to 112 trillion in 2023.
Impact of Global Liquidity on Cryptocurrencies
Research indicates that Bitcoin's price is influenced by factors beyond liquidity. For example, the combination of non-fiat currencies and credit-debt instruments needs continuous liquidity support, especially in countries with high debt-to-GDP ratios, such as Western countries and China, which exceed 100%.
Global Liquidity and Bitcoin: Future Outlook
Global liquidity continues to contract, marking the longest contraction phase in Bitcoin's history since 2019. Future liquidity lows could create significant opportunities for Bitcoin's growth. For example, the offset period suggests that future M2 increases might push Bitcoin prices above $90,000.
The cryptocurrency market and liquidity are closely intertwined. Future liquidity changes could significantly impact Bitcoin price trends.
