The founder and CEO of Global Macro Investor recently wrote on X that Bitcoin has entered the "parabolic phase" of the current market cycle.
Based on the correlation between Bitcoin and the Global Macro Investor Total Liquidity Index, Bitcoin prices may rise to a local high of more than $110,000 by the end of January 2025, and then fall below $70,000 in February 2025. Note: The index provides an overall view of the balance sheets of all major central banks.
However, due to what Pal calls a "temporary peak in liquidity", the potential pullback below $70,000 is only temporary, and he expects liquidity to continue to rise until the third quarter of 2025.
Alvin Kan, COO of Bitget Wallet, said that the growing money supply is a historic catalyst for Bitcoin prices. He said: "The Fed's increase in liquidity usually improves market conditions for risky assets such as Bitcoin. Historically, this liquidity injection has led to increased investor interest and capital inflows into the cryptocurrency market."
Other analysts expect global liquidity to peak at the end of January 2026. Based on historical data, Bitcoin could absorb up to 10% of newly printed money supply. Based on the projected $20 trillion in liquidity growth, this could attract $2 trillion worth of new investment into Bitcoin by 2025. (Cointelegraph)