Key Points
- The global monetary liquidity is growing at an annualized rate of over 6%, potentially impacting Bitcoin’s price.
- Bitcoin’s long-term holder supply is nearing a new all-time high, reinforcing the bullish market sentiment.
The global monetary liquidity is witnessing a rapid growth, with an annualized rate of over 6%, marking the fastest growth since April 2022. This surge is predicted to impact Bitcoin.
The rising liquidity is following a four-year cycle, similar to the one observed in April 2020. It is expected to boost risk asset prices, including Bitcoin, over the medium term.
Impact of Central Banks and BTC’s Pattern
Central banks, such as the Federal Reserve and ECB, are anticipated to implement rate cuts in the coming weeks, indicating the commencement of the global easing cycle.
Despite potential short-term headwinds, like the ongoing unfavorable Fed liquidity environment and a potential increase in the USD strength, the coming weeks may present golden opportunities, particularly for Bitcoin.
Bitcoin is forming a massive cup-and-handle pattern, with a breakout expected around mid-September. This could trigger a significant rally, signaling the start of the 2024-2025 Bitcoin bull run.
Long-term Holder Supply and Volatility
The Bitcoin long-term holder supply is nearing a new all-time high. As of now, long-term holders have kept 16.13 million BTC for more than 155 days. This strong accumulation by long-term holders, including institutions, indicates that core stakeholders remain committed, reinforcing the bullish market sentiment.
Bitcoin’s volatility levels have also returned near cycle highs. While this could pose challenges for leveraged traders, long-term holders see this as a promising sign of upcoming price movements.
Although volatility remains lower than 2021 levels, it is likely to increase as institutional players re-enter the market.
Bitcoin’s Funding Rates have remained bullish for over a year, supporting expectations of a strong price rise. The dominance of bulls in the Futures market for 381 days and the growing global liquidity are likely to continue pushing Bitcoin’s price higher in the near future.
