Jamie Coutts, Chief Crypto Analyst at Realvision, has issued a bullish forecast for Bitcoin, suggesting that the cryptocurrency is on the verge of a significant rally.
Positive Forecast by Jamie Coutts
Coutts’ optimism stems from his observation that central banks around the world are easing monetary policy and injecting liquidity into the global economy. He cites a composite global liquidity momentum model that has recently signaled a shift to a bullish regime, similar to the conditions that preceded a 75% Bitcoin rally in late 2023 and early 2024.
Role of Central Banks
In recent weeks, the central banks of Japan and China have provided significant liquidity, helping to expand the global monetary base by $1.2 trillion. Coutts believes this coordinated action, combined with a weaker U.S. dollar, indicates tacit approval from the U.S. Federal Reserve.
Historical Patterns and Future Predictions
Coutts predicts that based on historical patterns, Bitcoin could rise 2-3x from its current levels, requiring the US Dollar Index (DXY) to fall below 101 amid ongoing central bank interventions and the global M2 money supply to rise above $120 trillion. Coutts argues that the current monetary expansion is a natural consequence of the credit-based fractional reserve system, arguing that the money supply must continually grow to support outstanding debts or the entire system risks collapse.
Therefore, if Coutts' forecasts prove to be accurate, we can expect a significant Bitcoin rally in the coming years against the backdrop of global monetary expansion and a weakening US dollar.
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