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Bitcoin Poised for Growth as Global Liquidity Rises

Bitcoin Poised for Growth as Global Liquidity Rises

CoinomediaCoinomedia2025/02/26 16:11
By:Isolde VerneIsolde Verne

Bitcoin may skyrocket as global liquidity rebounds with rate cuts and QE. Here's why patience is key for the next big move.Bitcoin and Global Liquidity: A Delayed ReactionRate Cuts and QE: The Catalyst for Bitcoin’s Next MovePatience Is Key for the Next Bitcoin Explosion

  • Bitcoin follows global liquidity trends with a three-month lag.
  • A liquidity surge, rate cuts, and QE could drive Bitcoin’s next rally.
  • Patience is crucial as macroeconomic shifts take effect.

Bitcoin and Global Liquidity: A Delayed Reaction

Bitcoin has historically followed global liquidity cycles with a lag of approximately three months. This means that when liquidity contracts, Bitcoin tends to decline, and when liquidity expands, Bitcoin experiences a strong upward movement. Recent months have seen liquidity tightening, leading to Bitcoin’s pullback. However, the next phase could bring a significant turnaround.

Rate Cuts and QE: The Catalyst for Bitcoin’s Next Move

With central banks expected to shift towards rate cuts and quantitative easing (QE) to stimulate economic growth, global liquidity is poised to increase. Lower interest rates make risk assets, including Bitcoin, more attractive, as borrowing becomes cheaper and investors seek higher returns. If history repeats, Bitcoin could see a sharp price appreciation once liquidity expansion takes effect.

Bitcoin flushed down with global liquidity (3 month lag).

Next up is global liquidity spike, rate cuts, QE and Bitcoin exploding.

Patience. pic.twitter.com/braQeHnGro

— Quinten | 048. ETH (@QuintenFrancois) February 25, 2025

Patience Is Key for the Next Bitcoin Explosion

While Market sentiment fluctuates, it’s essential for investors to remain patient. Bitcoin’s lagging response to liquidity changes means that the real impact of monetary easing may take months to materialize. Those who understand this pattern can position themselves accordingly, anticipating a potential Bitcoin surge in the coming months.

Disclaimer: The content on CoinoMedia is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments carry risks, and readers should conduct their own research before making any decisions. CoinoMedia is not responsible for any losses or actions taken based on the information provided.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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