Crypto Market Bull Cycle Signals

Real Vision’s chief digital assets analyst Jamie Coutts suggests the crypto market bull cycle is ongoing, based on a key metric concerning global money supply (M2).

Coutts shared insights with his 34,500 followers on X, emphasizing the historical relationship between cryptocurrencies and M2 as indicative of future price rallies:

> “We know global liquidity drives asset prices. We also know network activity (aka adoption) underpins prices. So what happens when we map global liquidity versus blockchain active addresses? They tell the same story: crypto is a high-beta play on liquidity AND a structural growth asset. Zoom out. This still has a ways to go.”

Coutts also presented a chart showing that active crypto addresses align with M2 trends and noted that global liquidity is rising and may soon surpass last year’s highs:

> “Global liquidity bullish momentum signal driven by a weaker dollar. Edging closer to central bank interventions. Looking for a break above mid-2024 high to confirm new regime.”

Finally, Coutts predicts increased government acquisitions of Bitcoin (BTC) this year:

> “The world’s largest sovereign wealth fund is stacking satoshis. While that is massive news, let’s not forget that most developing countries with a domestic Bitcoin mining operation have likely been accumulating the asset via their sovereign wealth fund or an auxiliary for over a year, and this trend will only ramp up.”

Generated Image: Midjourney