Bitcoin benefits the most as global liquidity soars
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Global liquidity is on the rise, hitting recent highs as investors transfer capital to foreign markets. Bitcoin is the biggest winner as investors turn to BTC amidst market turmoil. Despite the ravaging impact of Donald Trump’s policies on global markets, global liquidity has surged to hit new levels, according to Alpha Extract. The rise in market liquidity has seen Bitcoin [BTC] continue to rise on its price charts despite the market turmoil. The recent spike means the markets are nearing September 2024 levels, just before Bitcoin rallied to $100k. Source: Alpha Extract The U.S. Dollar Index (DXY) is in a strong downtrend, having breached a two-year range and fallen to its lowest levels since March 2022. This decline suggests that global markets are stabilizing and liquidity is increasing. As DXY drops, major capital appears to be flowing out of the U.S. into foreign markets, indicating a preference for better investment conditions. Capital tends to move where it is well treated, and currently, the U.S. market is struggling to retain it. Source: MarketWatch Is this the golden moment for BTC? When global liquidity rises, Bitcoin tends to follow capital flows, often leading to price increases over time. This week, the Global Liquidity Index surged by $4.175 trillion, marking a 3.31% increase. Simultaneously, Bitcoin’s price jumped from $78K to $88K, showing the positive impact of increased capital inflow into global markets. Investors are returning to accumulate BTC, with U.S. institutional buyers re-entering the market. The Coinbase premium index turned positive after three days in the negative, signaling institutional interest in Bitcoin amid market uncertainty. Source: CryptoQuant The Korean Premium Index remained in positive territory, further confirming strong investor interest in Bitcoin. With both Korean and U.S. investors turning to BTC, it suggests that major players view Bitcoin as a haven amid…
Filed under: News - @ April 23, 2025 4:23 am