With the beginning of the fresh monthly trade, the Bitcoin price has displayed immense strength as it soared beyond $48,000. Although the bears are trying hard to restrict the rally, the buying pressure continues to coil up, suggesting the price may maintain a healthy upswing in the coming days. The broader or traditional, financial markets have a significant impact on the crypto space. They have flashed a massive bullish signal, which is the most important factor for the bull run.
Global liquidity or Global M2, is a measure of the U.S. money stock, which includes currency & coins held by non-public banks, deposits (both small and large), shares in retail money market mutual funds, etc. These levels largely indicate the presence of money available in the global financial system. The major central banks tracked for Global M2 include the biggest banks of the USA, China, EU, UK, Japan, Canada, Russia, and Australia.
As per lookintobitcoin, the levels, Global M2, had reached the highs at $93 trillion some days ago and are currently on the verge of marking new ATH, which may be the most bullish factor for the BTC price.
The rising levels indicate that central banks are making more money available in the global financial system by lowering interest rates or implementing quantitative easing. While more money is available to spend, a larger possibility of investing in assets like Bitcoin emerges. Historically, Bitcoin bull markets have coincided with the rapid expansion of global liquidity. As BTC is considered a potential alternative to the existing banking system, it is expected to increase prices.
Currently, BTC’s price is facing some bearish action as it has plunged from its highs above $48,000 to levels close to $47,000. After printing a couple of massive bullish candles, the bulls are expected to face some exhaustion. Therefore, after remaining calm for a while, the Bitcoin price is expected to revive with the bullish trend and reach the interim milestone of $50,000.
