Global Liquidity is surging, and historically, this suggests a potential bullish momentum for Bitcoin and the crypto market as a whole.
BTC price has flashed potential upside momentum in the past 24 hours, hitting $85,154 with a 37% rise in trading volume, at press time. The global liquidity index (GLI) measures the amount of “free-flowing money” existing in the global financial system. It reflects the overall ease of capital movement across markets and economies.
Looking at the charts, global liquidity is projected to rise, signalling that more capital could be available for investment in risky assets, including digital assets. Historical side-by-side comparison reveals that BTC follows the GLI movement.
According to Analyst Crypto Rover, global liquidity is projected to rise, potentially fuelled by government policies such as central banks lowering interest rates, balance sheet expansion, and Quantitative Easing(QE).
As more money becomes available, it could divert to the crypto market, starting with Bitcoin, toward altcoins. As a result, a bull rally could be on the cards in the next few months.