According to the data Bitcoin Magazine ProThe world’s money supply, or global liquidity, hit an all-time high of $95 trillion in 2018. Bitcoin investors and analysts are closely watching this key metric because increases in liquidity historically precede major bull runs.
Global Liquidity The total amount of money in circulation in the global financial system. It covers the M2 money supply of major economies such as the US, China, the EU, and Japan. M2 includes cash, bank deposits, money market mutual funds, and other near-money assets.
This figure is recent It reached $95 trillionIt is approaching the $100 trillion milestone. The previous highs were around $95 trillion when Bitcoin hit a new high of $73,000 in March of this year, and $90 trillion in November 2021, when Bitcoin hit a high of $69,000.
The progress of globalization Liquidity It encourages spending on riskier assets like Bitcoin. Historical data shows a strong correlation between growing liquidity and Bitcoin bull markets. This is because increased money creation typically leads central banks to lower interest rates and implement quantitative easing. This dynamic has played out repeatedly in Bitcoin’s history.
Some investors are investing in Bitcoin Central Bank Bitcoin is at a disadvantage as a system because of its fixed supply schedule, and if the current upward liquidity trend continues, Bitcoin could see another surge in price.
Bitcoin has already recovered to around $64,500 after briefly dropping below $60,000 last month, and with global liquidity reaching new highs, Bitcoin appears poised to continue its bull run.
