According to data from Bitcoin Pro MagazineThe global money supply, also known as global liquidity, has reached an all-time high of $95 trillion; this key indicator is being closely watched by Bitcoin investors and analysts, as historically high liquidity has preceded major rallies.
Global Liquidity It is the total amount of money circulating in the global financial system. It includes the M2 money supply in major economies such as the United States, China, the European Union, Japan, and others. M2 includes cash, bank deposits, money market mutual funds, and other assets close to money.
This number recently It reached 95 trillion dollarsBitcoin is approaching the $100 trillion mark. Its previous all-time high was also around $95 trillion, when Bitcoin hit its all-time high of $73,000 in March this year and $90 trillion when Bitcoin peaked at $69,000 in November 2021.
Increased global liquidity encourages spending on riskier assets like Bitcoin. Past data shows a strong correlation between expanding liquidity and Bitcoin bull markets. This is because more money creation typically prompts central banks to cut interest rates and implement quantitative easing. This dynamic has played out time and time again throughout Bitcoin’s history.
Some investors see Bitcoin as an alternative to the central banking system because it has a fixed supply schedule. Bitcoin could be poised for another price surge if the current liquidity bullish trend continues.
Bitcoin has already recovered to around $64,500 after briefly dipping below $60,000 last month. With global liquidity hitting new highs, Bitcoin looks set to continue its upward trajectory.
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