Epic #bullrun breakout setup from surge in global liquidity and financial institutions embracing Bitcoin-backed products. Key market signals point to a new wave of bullish activity in the crypto and risk asset markets. Hereâs what investors need to know to position themselves for the potential market upswing.
The current economic landscape, driven by the recent 50bps cut from the FED & Chinaâs aggressive stimulus and global liquidity injections, suggests a significant bullish impulse in the Bitcoin and cryptocurrency markets is fast approaching. Chinaâs central bank has announced a major liquidity boost, and as cheap capital floods global markets, Bitcoin, a historically strong beneficiary of these trends, appears poised for exponential gains. Past cycles indicate a correlation between global liquidity surges and Bitcoinâs price movements.
Key financial institutions like BlackRock and Fidelity are positioning themselves in Bitcoin-backed products, as myriad other banking institutions start to align their roadmaps with incorporating Bitcoin products is signaling increasing institutional confidence in the crypto market. Since the launch of Bitcoin spot ETFs in Q1, major players have started to fall in line, contributing to the foundational signals of a bullish phase. Furthermore, Kelly Kellam outlines China's potential plans to inject „1 trillion ($142 billion) into its largest banks will further drive liquidity into the global markets, setting the stage for a massive final parabolic bull trend wave to end sometime in Q3 2025.
A critical technical "factor supporting the bullish outlook is the continued compression of Bitcoin's volatility. Historically, periods of low volatility in Bitcoin have been followed by large price movements, often in the upward direction. With the upcoming U.S. presidential election, historical data suggests that post-election cycles tend to coincide with significant market activity, further bolstering the expectation of price appreciation. Coupled with the global liquidity cycle and Bitcoinâs four-year halving cycle, all indicators point toward a continuation of the current market momentum, likely culminating in a bullish 2025.
As markets enter October (historically referred to as UPtober, investors are closely watching Bitcoinâs performance as the election fast approaches as well. Bitcoin price has historically exploded higher following the election.
Additionally past halving cycles have shown that market consolidation typically lasts about 160ish days before a significant uptick in price action. With the global liquidity injection in full swing and the 160-day mark approaching, the (US) Elections fast upon us, time is running out to get positioned before the next few months begin to melt to the upside. Kellam and many other top crypto experts predict that Bitcoin and risk assets could experience an impressive rally as the market moves toward a potential peak in 2025.
