Cryptocurrency | Price (USDT) |
---|---|
BTC | $107251.5500000000 |
ETH | $2430.0900000000 |
BNB | $649.2398300000 |
XRP | $2.1826720000 |
ADA | $0.5615355000 |
SOL | $149.8300000000 |
DOGE | $N/A |
DOT | $3.3886500000 |
LTC | $86.3074000000 |
LINK | $13.3116600000 |
Category: CRYPTO NEWS
The post Bitcoin price rallies as global liquidity growth accelerates — Analysts appeared on BitcoinEthereumNews.com. Key takeaways: Bitcoin’s price closely tracks global liquidity growth, with liquidity explaining up to 90% of its price movements, according to Raoul Pal. In the long term, global liquidity continues to expand, driven by the increasing debt levels in many countries. On a shorter timeframe, global liquidity follows a cyclical pattern, with Michael Howell projecting the current cycle to peak by mid-2026. Bitcoin (BTC) price is notoriously sensitive to global liquidity. Some analysts go as far as calling their correlation near-perfect, with a lag of about three months. This relationship is fueling the current bullish narrative as BTC price soars back above $100,000, but how long can this trend last? Liquidity is Bitcoin’s silent price driver Raoul Pal, the founder of Global Macro Investor, recently gave a speech on the strong correlation between Bitcoin and global M2 liquidity. In a recap posted by Paul Guerra, Pal’s message refers to: despite looming concerns — recession risks, geopolitical tensions, and other global stressors — rising liquidity as the dominant force behind asset price action. According to Pal, expanding liquidity backs up to 90% of Bitcoin’s price action and as much as 97% of the Nasdaq’s performance. Indeed, a chart comparing global M2 (with a 12-week lead) and Bitcoin’s price shows an almost uncanny alignment. Global M2 and BTC/USD. Source: Real Vision Pal also frames the issue in personal finance terms. He says there’s an 11% “hidden tax” on all of us, composed of 8% currency debasement and 3% global inflation. He notes, “If you’re not earning more than 11%/yr, you’re getting poorer by definition.” Bitcoin has returned an average of 130% annually since 2012, despite dramatic drawdowns. That makes it one of the most asymmetric bets of the past decade — and it’s outperformed the Nasdaq by over 99%. What drives global…
2025-05-10T08:45:07+00:00
https://bitcoinethereumnews.com/bitcoin/bitcoin-price-rallies-as-global-liquidity-growth-accelerates-analysts/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-price-rallies-as-global-liquidity-growth-accelerates-analysts