Bitcoin May Rise 20% for Every 1% Increase in Liquidity
Bitcoin's recent surge is linked to a record expansion in global liquidity, as noted by Real Vision chief crypto analyst Jamie Coutts. He asserts that every 1% increase in liquidity could lead to a 20% rise in Bitcoin's price.
Key Points
- Global Liquidity Index (GLI) reached an all-time high on April 10, coinciding with Bitcoin's 40% rally.
- Since the GLI breakout, it has increased by 2%, while Bitcoin's market value rose significantly.
- Coutts suggests that the relationship between GLI and Bitcoin prices indicates potential for further gains due to continued capital inflows.
- Current financial conditions are favorable, with central banks signaling ongoing liquidity support.
- Future growth projections estimate global liquidity may rise 1-6% over the next year, which could lead to substantial gains for Bitcoin.
As of now, Bitcoin trades at $107,676.
