According to data from bitcoin Pro MagazineThe global money supply, also known as global liquidity, has reached an all-time high of $95 trillion; bitcoin investors and analysts are closely watching this key indicator as increased liquidity has historically preceded major bull runs.
Global liquidity It is the total amount of money circulating in the global financial system. It covers the M2 money supply of major economies such as the US, China, EU, Japan, etc. M2 includes currency, bank deposits, money market mutual funds, and other quasi-monetary assets.
This figure recently reached 95 billion dollarsapproaching the $100 trillion milestone. The previous all-time high was also around $95 trillion, when bitcoin hit a new ATH in March this year at $73,000 and $90 trillion when bitcoin hit its peak of $69,000 in November 2021.
Increased global liquidity encourages spending on riskier assets like bitcoin. The data above shows a strong correlation between liquidity expansion 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 repeatedly played out 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 on the verge of experiencing another price surge if the current upward trend in liquidity persists.
bitcoin has now recovered to $64,500 after briefly dipping below $60,000 last month. With global liquidity reaching new highs, bitcoin looks set to continue its uptrend.
