Data from the National Financial Conditions Index (NFCI) shows liquidity levels at their strongest point in over two years — before the Fed began its aggressive rate hike cycle.
Historically, BTC has performed best in periods of loose financial conditions, when access to capital and risk appetite are higher.
“That’s a strong macro setup for Bitcoin,” Ecoinometrics stated.
The chart highlights key turning points:
Top of the previous bull market in 2021 occurred during peak liquidity.
Bear market bottom followed tightening conditions in 2022–2023.
