Weekly Global Liquidity Update: Rising Central Bank Liquidity Signals Potential Bitcoin Upside

May 7, 2025 — Financial Markets Desk

A recent update to the Global Liquidity chart reveals a notable surge in central bank liquidity injections worldwide since the beginning of the year. Global Liquidity, which tracks the aggregate liquidity supplied by major central banks, serves as a leading macroeconomic indicator for asset prices—especially Bitcoin.

Historically, movements in Global Liquidity have shown a lag of approximately 3–4 months in relation to Bitcoin’s price action. This means that an increase in liquidity tends to precede upward momentum in Bitcoin by several months, offering strategic insights for investors and market participants.

The latest data indicates a clear upward trend in liquidity since early 2025, suggesting that macroeconomic conditions may be shifting toward a more accommodative environment. This trend, if sustained, could act as a tailwind for risk assets, including cryptocurrencies.

Market analysts note that while short-term volatility remains a factor, the current liquidity expansion may lay the groundwork for a potential rally in Bitcoin and other digital assets by mid to late 2025.

Investors are advised to monitor liquidity trends closely, as continued injections from central banks could strengthen the bullish outlook for Bitcoin in the coming months.

Key Takeaway: The rise in global liquidity may serve as a leading indicator for a Bitcoin price increase within the next 3–4 months, aligning with historical patterns.$BTC