How Expanding Global Liquidity Could Elevate Bitcoin Prices to New Records

Matt Crosby of Bitcoin Magazine Pro correlates Bitcoin’s bullish momentum with increasing global M2 money supply, revealing a strong connection between liquidity levels and Bitcoin price changes. He indicates a 56-60 day delay in price response, emphasises monitoring liquidity growth rates, and anticipates Bitcoin could reach $108,000 by June 2025, given continued upward liquidity trends.

Bitcoin’s recent price movements are influenced by global liquidity patterns, as highlighted by Matt Crosby, Lead Analyst at Bitcoin Magazine Pro. His analysis correlates the bullish surge of Bitcoin with the expanding global M2 money supply. This reveals significant economic implications for Bitcoin’s performance.

Crosby identifies a strong correlation, over 84%, between Bitcoin’s price and the global M2 liquidity levels. Historically, increases in liquidity lead to upward price adjustments in Bitcoin, typically following a lag of about 56 to 60 days. This correlation was evident when Bitcoin price rose from $75,000 to over $85,000, aligning with Crosby’s macroeconomic forecasts.

Understanding Bitcoin’s price movements necessitates recognising the two-month delay in market reactions to monetary policy changes. Crosby advises that liquidity injections don’t instantly affect Bitcoin. Instead, an incubation period allows liquidity to permeate the financial system, which can then influence Bitcoin’s price positively.

Through rigorous backtesting, Crosby found that a 60-day lag provides the most predictive accuracy for Bitcoin price movements, useful for investors tracking macroeconomic trends to anticipate price increases effectively.

Crosby also examines the relationship between Bitcoin and traditional equity markets. The S&P 500 has an even higher correlation of around 92% with global liquidity, reinforcing the link between monetary expansion and asset performance across various classes, including cryptocurrencies.