Analysis of macro liquidity trends suggests potential support for crypto markets in coming weeks. Global liquidity has maintained a 90% correlation with BTC since 2012 and continues growing at approximately 10% annually. Key indicators include easing financial conditions, accelerating US total liquidity following recent constraints, and expanding credit mechanisms through the eSLR. Additional supportive factors cited include expected US rate cuts, tax refunds flowing into bank balance sheets, and China’s expanding monetary base. Stablecoin issuance grew 50% last year and continues accelerating, with trading volumes in the trillions of dollars. Weekly and daily technical indicators suggest potential for trend reversal within the next two weeks if weakness continues.
Leave a Reply