Recent analysis confirms that global liquidity is reaching record levels and continues to rise sharply, which may influence the Bitcoin market.
Global Liquidity
Bitcoin analyst 'The Rational Root' pointed out that global liquidity is at record levels. In his post, he stated, 'Global liquidity at an ATH, rising steeply.'
Correlation with Bitcoin Prices
The analysis shows that global liquidity historically correlates with Bitcoin prices. The chart shared by the analyst demonstrates how the total money supplied by central banks relates to Bitcoin prices over several market cycles.
Central Bank Trends
The chart also tracks the total money supplied by various central banks, including the Federal Reserve, European Central Bank, Bank of Japan, and People’s Bank of China, among others. This visualizes the continuing rise in global liquidity.
Thus, the current state of global liquidity and its relationship with Bitcoin prices may indicate future trends in the cryptocurrency market.