The post Bitcoin’s Potential Bull Run Driven by Global Liquidity and Market Sentiment Trends appeared on BitcoinEthereumNews.com.

Recent trends in global liquidity indicate Bitcoin’s (BTC) potential for bullish momentum, particularly amidst evolving economic conditions. Notably, decreased demand for U.S. Treasury securities could signal a shift in capital flow toward higher-risk assets like Bitcoin. “This shift in liquidity dynamics suggests a foundational strength for Bitcoin’s market position,” stated a leading analyst at COINOTAG. The article explores Bitcoin’s resilience and potential growth driven by global liquidity trends, market sentiment, and network activity, signaling a bullish outlook. Bitcoin’s Price Movement and Global M2 Liquidity Correlation Bitcoin’s pricing structure closely correlates with the Global M2 Day-over-Day (DoD) 30DMA metrics. Following the liquidity surge during COVID-19, Bitcoin reached unprecedented highs, illustrating the powerful influence of M2 increases on the cryptocurrency’s value. Despite the Federal Reserve’s ongoing Quantitative Tightening (QT), recent data shows a slight uptick in global liquidity, supporting Bitcoin’s recovery trajectory. This ongoing pattern aligns with historical latency between M2 inflows and Bitcoin’s price, emphasizing a bell curve correlation that underpins Bitcoin’s bullish phases when liquidity increases. If the Federal Reserve faces liquidity challenges within its Treasury bill offerings, a rapid rise in M2 could ensue, creating upward price pressure for Bitcoin. Sustained M2 growth may allow Bitcoin to retest previous peaks, potentially initiating a bullish breakout by 2024. Market Sentiment: A Key Driver for Bitcoin’s Growth Potential The Greed & Fear Index serves as a critical gauge of market sentiment affecting Bitcoin’s pricing. Traditionally, Bitcoin tends to experience significant rallies when market sentiment shifts from extreme fear to neutral or optimistic levels. Currently, this index reflects cautious optimism, transitioning from earlier extreme fear, marking a rebound towards a more neutral stance. This movement aligns closely with the global liquidity trends, where an incremental increase in M2 has coincided with Bitcoin’s recent price recovery. As sentiment improves and financial conditions favor…

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Filed under: News - @ January 4, 2025 6:15 am