According to BlockBeats, Real Vision analyst Jamie Coutts stated on August 15 that central banks worldwide are easing policies, opening liquidity valves, and setting the stage for a significant rise in Bitcoin. The Global Liquidity Momentum Composite Model (MSI) has shown its first bullish signal since November 2023. Previously, Bitcoin surged by 75% from November to April before the signal turned bearish.
In the past month, the Bank of Japan and the People's Bank of China have increased liquidity by $400 billion and $97 billion, respectively. The global money supply (credit) has expanded by $1.2 trillion, significantly accelerated by the sharp decline in the US dollar. This indicates coordination with the Federal Reserve. Comparing this phase to similar stages in previous cycles:
- In 2017, Bitcoin increased 19-fold.
- In 2020, Bitcoin rose six-fold.
- In 2024, an estimated increase of 2-3 times is expected.
To achieve this, Bitcoin needs to push the DXY well below 101, driven by continued central bank injections. This would bring the global M2 money supply to over $120 trillion in this cycle. Finally, as noted yesterday, this is the natural state of a fractional reserve system based on credit. The money supply must continually expand to support existing debt, or everything will collapse.
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