- CryptoQuant analyst outlines the factors necessary for the next bull run in the crypto market.
- The analyst focuses on the stagnant atmosphere of the crypto market, touching on a few possible points for the next surge.
- The analyst highlights the historical correlation between the fastest rises in Bitcoin and significant increases in the global money supply (M2).
An analyst from CryptoQuant, an on-chain analysis platform, sheds light on the factors required for the next bull run in the crypto market, emphasizing the need for increased macroeconomic risk appetite and high liquidity.
Historical Correlation Between Bitcoin and Global Money Supply
The analyst from CryptoQuant points out that historically, the fastest expansions in Bitcoin have typically coincided with significant increases in the global money supply (M2). These periods often indicate times of high liquidity and strong investor risk appetite. They are usually characterized by a substantial influx of new capital into the market, often driven by individual investors’ FOMO (Fear of Missing Out).
Current Market Dynamics
However, the experienced analyst notes that these dynamics are not currently in play. The annual change in M2 is positioned at neutral levels. There are almost no signs of a demand surge that could trigger a sudden price increase. On the supply side, long-term investors have stabilized around $60,000, and short-term investors have reduced sales due to decreased profitability. In this context, it is likely that the market will continue its sideways trend until factors that could trigger a decisive move emerge.
Conclusion
In conclusion, the crypto market is currently in a stagnant phase with no clear signs of a demand surge that could trigger a significant price increase. However, historical trends suggest that a significant increase in the global money supply (M2), indicating high liquidity and strong investor risk appetite, could potentially trigger the next bull run. Until such factors emerge, the market is likely to continue its sideways trend.
