Real Vision’s chief digital assets analyst Jamie Coutts says that one key metric is signaling the crypto market bull cycle is far from over.
Coutts tells his 34,500 followers on the social media platform X that based on the historical relationship between cryptocurrencies and the global money supply (M2) metric more rallies are coming.
“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 shares a chart suggesting that active crypto addresses follow the trend of M2.
He also says that global liquidity is in an uptrend and may soon exceed the high from last year.
“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.”
Lastly, he predicts that more governments will acquire 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.”
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