With the global currency flooding, when will Bitcoin soar?
百币精
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Global monetary easing, when will Bitcoin soar?
Since January of this year, the global M2 money supply has rebounded significantly and reached a historic high. Based on this, I believe that Bitcoin reaching a new high is just a matter of time. The market is entering a new phase of liquidity recovery, which is also the reason for my optimism about the future market. Last week, the Federal Reserve indicated that it would slow down the quantitative tightening process, with two rate cuts expected in the second half of the year. This is a positive signal, coupled with policy coordination from other major economies, the EU promoting new fiscal stimulus plans, and China releasing more liquidity. The global policy collaboration has created a more accommodative environment, and the probability of continued expansion of the global money supply in the future has increased. Bitcoin is highly correlated with global liquidity, and from a mid-term perspective, Bitcoin still has strong upward potential. It should be noted that Bitcoin's price response usually has a delay of several months, while gold has already reacted, which is related to safe-haven demand. The impact of monetary policy adjustments on the market will not be immediate; liquidity transmission takes time. The earliest recovery in the Bitcoin market is expected by the end of this month or mid-April, and at the latest by early May. Therefore, many viewpoints suggest that April or May will become an important time window for a trend reversal. Of course, the uncertainty of tariff policies has not been eliminated, and if the U.S. tightens monetary policy again, the pace of monetary expansion may be interrupted, limiting the rise in Bitcoin prices. However, based on the current policy inclination and international trends, this possibility is relatively low. In the coming weeks, Bitcoin will remain volatile, with more consolidation at lower levels, but ultimately it will break through and reach new highs.
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