According to ChainCatcher, Real Vision analyst Jamie Coutts posted on social media that central banks are giving in, liquidity valves are opening, and Bitcoin is about to rise sharply. The Global Liquidity Momentum Composite Model (MSI) showed its first bullish signal since November 2023, after Bitcoin rose 75% between November and April, and then the signal turned bearish.
In the past month, the Bank of Japan and the People's Bank of China increased by US$400 billion and US$97 billion respectively; global monetary aggregates (credit) expanded by US$1.2 trillion, a growth that accelerated significantly with the help of the sharp decline in the US dollar . This suggests that this is consistent with the Fed's agreement. Compared to similar phases of previous cycles (obviously not exactly the same):
2017: Bitcoin rises 19-fold
2020: Bitcoin rises 6 times
2024: Estimated to be 2-3 times
In order for this to happen, Bitcoin needs to get DXY well below 101, which will be driven by continued central bank injections. This will push the global M2 money supply to over $120 trillion this cycle. Finally, as noted yesterday, this is the natural state of affairs in a credit-based fractional reserve system. The money supply must continually expand to support existing debt, or everything will collapse.
