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Bitcoin (BTC): Is the Global Market Entering a Liquidity Cycle? If So, This Is How BTC Will React


The recent spike in the price of Bitcoin (BTC) has been the talk of the crypto world, leaving traders speculating about what will happen. While some remain skeptical about the price increase, some data suggests that the market is entering a new liquidity cycle, which could have a positive impact on BTC.

According to Delphi Digital, the 75% surge that Bitcoin witnessed over the last few months could indicate that the global market is entering a new liquidity cycle. The new liquidity cycle refers to a period with a significant increase in the availability of money and credit in the global financial system. This could be due to central bank policies, government stimulus programs and increased investor confidence.

If the market does enter a new liquidity cycle, it could boost demand for BTC, as increased liquidity and credit availability can lead to higher investment activity and asset prices. This has the potential to have a positive impact on the value of BTC.

Another positive indicator for BTC is its MVRV ratio. According to data from CryptoQuant, BTC is likely to enter another bull run. In January 2023, the MVRV ratio for Bitcoin broke through the 1.5 level, indicating the start of a bull market. The MVRV ratio currently fluctuates between 1.55 and 1.45, with big investors watching it closely to buy discounted Bitcoins during downturns.

The analysis also indicates that 365DSMA should be considered, with the MVRV ratio breaking through it to signal a trend change. If Bitcoin’s MVRV ratio breaks the 1.5 level again, it will likely shift to a value range between 1.8 and 2, i.e. if the BTC price reaches 30K.

Despite these bullish signs, some traders remain cynical about BTC’s growth. Data from TheBlock shows that the Put to Call ratio for Bitcoin has seen a significant increase over the last few months. This suggests that many traders have taken positions betting on the potential future decline in the BTC market price.

In conclusion, while some traders remain skeptical of BTC’s growth, data suggests that the market is entering a new liquidity cycle, which could have a positive impact on the value of BTC. Investors should closely monitor the MVRV ratio and Put to Call ratio to make informed decisions about their investments. With the possibility of a new bull run, BTC may be worth considering as an investment option.


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