Real Vision’s chief digital assets analyst Jamie Coutts states that one key metric indicates the crypto market bull cycle is far from over. Coutts tells his 34,500 followers on the social media platform X that based on the historical relationship between cryptocurrencies and the global money supply (M2) metric, more rallies are forthcoming.
“We know global liquidity drives asset prices. We also know network activity (aka adoption) underpins prices. So what happens when we map global liquidity versus blockchain active addresses? They tell the same story: crypto is a high-beta play on liquidity AND a structural growth asset. Zoom out. This still has a ways to go.”
Source: Jamie Coutts/X
Coutts shares a chart suggesting that active crypto addresses follow the trend of M2. He also states that global liquidity is in an uptrend and may soon exceed the high from last year.
“Global liquidity bullish momentum signal driven by a weaker dollar. Edging closer to central bank interventions. Looking for a break above mid-2024 high to confirm new regime.”
Source: Jamie Coutts/X
Lastly, he predicts that more governments will acquire Bitcoin (BTC) this year.
“The world’s largest sovereign wealth fund is stacking satoshis. While that is massive news, let’s not forget that most developing countries with a domestic Bitcoin mining operation have likely been accumulating the asset via their sovereign wealth fund or an auxiliary for over a year, and this trend will only ramp up.”
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