According to BlockBeats, the founder and CEO of Global Macro Investor recently stated that Bitcoin has entered the 'parabolic phase' of its current market cycle. The correlation between Bitcoin and the Global Macro Investor's total liquidity index suggests that Bitcoin's price could rise to a local high of over $110,000 by the end of January 2025. However, it is expected to fall below $70,000 in February 2025. This index provides an overview of the balance sheets of all major central banks.
Despite this potential dip below $70,000, which is attributed to what Pal describes as a 'temporary liquidity peak,' the decline is expected to be short-lived. Liquidity is anticipated to continue rising until the third quarter of 2025. Other analysts predict that global liquidity will peak by the end of January 2026. Historical data indicates that Bitcoin could absorb up to 10% of the new money supply. With an expected $20 trillion increase in liquidity, this could attract $2 trillion in new investments into Bitcoin by 2025.
