4 Key Reasons Why The Bitcoin Bull Run Is Far From Over
May 20 2024 - 4:15AM
NEWSBTC
In an analysis shared via X, renowned crypto analyst Ted
(@tedtalksmacro) has provided compelling evidence to support his
assertion that the current Bitcoin bull run is far from over. Ted’s
insights are based on four critical indicators related to
traditional finance and crypto liquidity, each pointing to
sustained growth in the near future. Here’s a breakdown of his
analysis: #1 65-Month Liquidity Cycle Ted highlights the 65-month
liquidity cycle, a historical pattern that marks the ebb and flow
of liquidity in financial markets. According to his analysis, this
cycle bottomed out in October 2023, signaling the beginning of a
new expansion phase. Related Reading: Most Important Bitcoin
Indicator Nears Bullish Flip: $150,000 Soon? “We are now in the
expansion phase, which is expected to peak in 2026,” Ted stated.
This projection aligns with the anticipated easing by central banks
in response to slowing economic data over the next 18 to 24 months.
Historically, increased liquidity has been a precursor to bull
markets in various asset classes, including Bitcoin and the broader
crypto ecosystem. #2 M2 Money Supply The M2 money supply, which
includes cash, checking deposits, and easily convertible near
money, is another crucial indicator, if not the most important
indicator of global liquidity. Ted notes that the rate of expansion
in the M2 money supply is at its lowest since the 1990s. “There is
plenty of room to the upside for easing liquidity conditions,” he
explained. As central banks potentially ease monetary policies to
stimulate economies, increased M2 growth could lead to more capital
flowing into risk assets like Bitcoin. #3 Crypto Liquidity While
liquidity has returned to the crypto markets, particularly with the
introduction of spot Bitcoin ETFs, Ted points out that the velocity
of inflows has not yet reached the levels seen at cycle tops. “The
velocity of inflow has not yet seen a manic phase consistent with
cycle tops,” he noted. Related Reading: Tether Adds Fresh $1
Billion USDT To Supply – Bitcoin To Rally Again? This suggests that
while interest and investment in Bitcoin are growing, the market
has not yet reached the speculative frenzy that typically precedes
a major correction. This phase of measured inflow can provide a
more stable foundation for continued price increases. #4 Spot
Bitcoin ETF Flows The US based spot Bitcoin ETFs have seen
significant inflows, with last week alone witnessing $950 million
flowing into spot Bitcoin ETFs in the US, the largest net inflow
since March. Ted expects these inflows to increase as Bitcoin’s
price rises and traditional finance investors regain confidence in
the asset. “Expect these to only increase as price drifts higher
and tradFi once again renew faith in the asset,” he stated. The
growing acceptance and investment from institutional investors via
ETFs are a strong bullish indicator for Bitcoin’s continued ascent.
Each of these factors points to a sustained and robust bull market
for Bitcoin. Ted’s analysis, grounded in traditional financial
indicators and crypto-specific data, provides a comprehensive
outlook on the current and future state of the Bitcoin market. As
central banks potentially ease monetary policies and institutional
interest continues to grow, the conditions appear ripe for
Bitcoin’s bull run to extend well into the coming years. At press
time, BTC traded at $66,602. Featured image created with DALL·E,
chart from TradingView.com
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