Bitcoin’s Liquidity Cycles: A Game Changer?
According to crypto analyst TechDev, Bitcoin’s bull runs are primarily driven by liquidity cycles, rather than the widely discussed halving events. In a recent post on Twitter, TechDev shared a chart that illustrates the correlation between global liquidity and Bitcoin’s price movements, suggesting that these liquidity cycles have been running for around 3.5 years before Bitcoin even existed.
The chart shows sinusoidal lines predicting pivot points in Bitcoin’s price trajectory, aligning closely with inflections in major central banks’ balance sheets, indicating a correlation between global liquidity and Bitcoin price movements.
What’s Next for Bitcoin?
TechDev’s analysis suggests that the next high in the Bitcoin cycle could occur in 4-11 months, emphasizing the role of liquidity cycles as the real drivers behind BTC’s explosive moves. The current liquidity cycle has been running for 37 months, with previous cycles lasting around 42 and 44 months.
The data also highlights moments in Bitcoin’s price trajectory that do not align with halving events but correlate with shifts in the CN10Y/DXY High-Yield Spread and the VI trend direction and strength.
Hot Take
TechDev’s analysis challenges the conventional wisdom surrounding Bitcoin halving events and proposes that liquidity cycles are the primary catalysts for bull runs. This perspective offers a new lens through which to understand Bitcoin’s price dynamics.
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