Analysts are examining how global liquidity growth impacts Bitcoin's price. Despite a possible correlation, experts caution against a lack of reliable theoretical foundations.
Liquidity Impact Analysis
On March 28, Matrixport analysts noted that an increasing money supply from central banks could channel liquidity into the crypto market. However, they stressed that this doesn't necessarily raise Bitcoin prices, as the correlation lacks a solid theoretical foundation.
Experts' Views on Future Movements
Another analyst expressed concerns about Bitcoin's future, noting a bearish divergence in the Bitcoin Macro Index. Without a clear catalyst, Bitcoin’s price might continue trading sideways, highlighting the importance of macroeconomic policy in determining Bitcoin's trajectory.
Role of Institutional Investors
A previous Matrixport report suggested that institutional investors are becoming a dominant force in Bitcoin's price movements. While Bitcoin holds 60% market dominance, its price increasingly mirrors BlackRock's IBIT ETF, underscoring Wall Street's influence in the crypto market.
Analysts suggest a cautious outlook on Bitcoin's future, considering the significance of macroeconomic decisions and the impact of institutional players.
