Liquidity Increase Could Trigger Next Major Bull Run in Crypto Markets
Global liquidity is increasing, which may impact crypto markets significantly. Analysts Michael Howell and Raoul Pal suggest this trend could initiate a major bull run for digital assets like Bitcoin and Ethereum.
- Michael Howell notes a structural liquidity wave driven by U.S. Treasury cash reserve drawdowns and China's monetary easing.
- This trend is linked to fiscal pressures and rising debt levels.
- Raoul Pal emphasizes that crypto assets are highly sensitive to liquidity changes, predicting a period of substantial gains.
- Pal's models estimate that the crypto market cap could exceed $10 trillion by 2026.
- Both experts caution that continued liquidity growth is crucial; inflation or rapid Federal Reserve policy tightening could hinder progress.
- Volatility in the market is expected to remain high.
Current indicators suggest that rising liquidity could position crypto as a leading asset class.