Analysts reveal bullish case for Bitcoin as global liquidity rises
The stage looks set for Bitcoin to surpass its previous all-time high, fueled by a surge in global liquidity, several macroeconomic analysts argue.
In recent weeks, the global macro financial outlook has been showing signs of a shift. Over the weekend, Goldman Sachs economists announced that they had lowered their estimations of the probability of a U.S. recession in 2025 from 25% to 20%.
This change came after the latest U.S. retail sales and jobless claims data were released, which suggested that the U.S. economy might be in better shape than many had feared.
Liquidity surge across global markets
To understand where BTC might be headed, we need to delve into the mechanisms behind the current liquidity surge and how it could impact the broader markets.
The U.S. liquidity flood
In the U.S., the Treasury appears poised to inject a massive amount of liquidity into the financial system. BitMEX cofounder and well-known crypto industry figure Arthur Hayes stated in a recent Medium post that this liquidity boost could push Bitcoin past its previous all-time high of $73,700. But why now?
One possible explanation is the upcoming presidential elections. Maintaining a strong economy is crucial, and this liquidity injection could be a way to ensure favorable conditions as the election approaches.
China’s liquidity moves
While the U.S. is ramping up its liquidity efforts, China is also making moves — though for different reasons.
The big picture on global liquidity
What’s particularly interesting about these liquidity moves is that they don’t seem to be happening in isolation.
Where could the BTC price go?
On Aug. 5, Bitcoin and other crypto assets suffered a sharp decline due to a market crash triggered by growing recession fears and the sudden unwinding of the yen carry trade. The impact was severe, with Bitcoin plummeting to as low as $49,000 and struggling to recover.