BTC Price Eyes 2x Gains as Central Banks Pump $497 Billion
The post BTC Price Eyes 2x Gains as Central Banks Pump $497 Billion appeared first on Coinpedia Fintech News
In a highly volatile and slightly turning bearish market, BTC price is trading at $58,275 today with an intraday gain of 1.25%. Despite the recent recovery, the crypto market leader trades under its 200-day EMA. Furthermore, the 20-day EMA is inching closer to a bearish crossover with the 200-day EMA.
Nevertheless, the bullish demand at lower levels is teasing a potential as the fundamental gears shift to the bullish trend. As the previous candle indicates lower price rejection with a long-tail formation from the $56,000 support level, the BTC price is not ready to give up.
As the underlying bullish sentiment increases, the derivatives market supports the upmove in the BTC price. This is indicated by the rising open interest in Bitcoin, which climbed from $26.65B to $29.35B in 10 days.
As the OI increases, big traders on multiple exchanges are increasing their interest, anticipating further price jumps.
However, the market is still volatile, as seen by the total liquidations over the past 24 hours, amounting to $208.88 million. Of this, $159.91 million worth of long positions were liquidated, while $48.97 million in short positions were also closed.
Central Banks Turn on the Liquidity TapsAs per the recent tweet from James Coutt, he reveals the broader macroeconomics is shifting positively for a bull run in the BTC price and the broader crypto market.
Central banks, particularly the Bank of Japan (BoJ) and the People’s Bank of China (PBoC), have injected over $400B and $97B into the global money base (credit). This massive surge in global money liquidity is a part of $1.2 trillion expansion in the global money supply.
The positive turn in the global money supply comes with the aid of a sharp decline of the US dollar. Historically, such moves have resulted in a bull run in BTC prices.
Based on Coutt’s analysis, the last time we saw a similar high liquidity phase, BTC price surged 19x in 2017 and 6x in 2020. And with the history repeating itself, central banks globally coming together as the US dollar weakens, Bitcoin could witness a massive surge potentially crosing the $100K level.
The global liquidity momentum model (MSI) has just flashed its first bullish signal since November 2023. Back then, Bitcoin rallied 75% before the regime turned bearish.
Will BTC Price Rally 2x-3x?From a bullish perspective, we must ignore the recent noise of Bitcoin hitting the $50K mark due to increased FUD. The strong hands and the rising ETF inflows as BTC price falls suggest a potential rally in bitcoin. Hence, the Bitcoin Price Prediction of 2x to 3x surge is increasing among traders.
Based on Coutt’s assumption, a further correction in the DXY is necessary to provide sufficient tailwinds to boost the bull run. As this continues, the global money base will expand, coming from the central banks.