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Bitcoin [BTC]: Are Global Markets Entering a Liquidity Cycle? If So, This is How BTC Will React

Bitcoin’s [BTC] recent price surge has been the talk of the crypto world, leaving traders speculating on what’s to come. While some remain skeptical about the rising prices, some data suggests that the market is entering a new liquidity cycle, which could positively impact BTC.

According to Delphi Digital, the 75% spike that Bitcoin has witnessed over the last few months could indicate that global markets are entering a new liquidity cycle. A new liquidity cycle refers to a period with a significant increase in the availability of money and credit in the global financial system. This could be due to central bank policies, government stimulus programs, and increased investor confidence.

If the market does enter a new liquidity cycle, it could drive demand for BTC, as increased liquidity and credit availability can lead to higher investment activity and asset prices. This could potentially have a positive impact on the value of BTC.

Another positive indicator for BTC would be its MVRV ratio. According to data from CryptoQuant, BTC is likely to enter another bull run. In January 2023, the MVRV ratio for Bitcoin broke the 1.5 level, indicating the start of a bull market. The MVRV ratio currently fluctuates between 1.55 and 1.45, with large investors monitoring it closely to buy discounted Bitcoins during dips.

The analysis also suggests that the 365DSMA should be considered, with the MVRV ratio breaking it to signal a trend change. If Bitcoin’s MVRV ratio breaks the 1.5 level again, it’s likely to shift to a range of values between 1.8 and 2, that is if the BTC price reaches 30K.

Despite these bullish signs, some traders remain cynical about BTC’s growth. Data from TheBlock suggests that the Put to Call ratio for Bitcoin has experienced a significant increase over recent months. This indicates that many traders have taken positions betting on a potential future BTC market price decrease.

In conclusion, while some traders remain skeptical about BTC’s growth, data suggests that the market is entering a new liquidity cycle, which could positively impact BTC’s value. Investors should closely monitor the MVRV ratio and the Put to Call ratio to make informed decisions about their investments. With the possibility of a new bull run, BTC may be worth considering as an investment option.


Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.