Analysis: Bitcoin liquidity indicators suggest a potential high of $110,000 by January next year

The founder and CEO of Global Macro Investor recently stated that Bitcoin has entered the "parabolic phase" of the current market cycle. Based on the correlation between Bitcoin and the total liquidity index of global macro investors, the price of Bitcoin may rise to a local high point above $110,000 by the end of January 2025, then fall below $70,000 in February 2025. Note: This index provides an overall view of all major central bank balance sheets.

However, due to what Pal calls a "temporary peak in liquidity", any potential pullback below $70,000 is only temporary. He expects liquidity will continue to rise until the third quarter of 2025.

Other analysts predict that global liquidity will peak at the end of January 2026. According to historical data, Bitcoin could absorb up to 10% of new money supply. Given an expected increase in liquidity by $20 trillion dollars, this could attract new investments worth $2 trillion into Bitcoin by 2025.