Liquidity Grows; Is $BTC Poised to Follow Gold To All-Time Highs?

• Major market events (ETF listings, Mt. Gox repayments) injected billions of $USD into Bitcoin ($BTC).
• Long-term patterns point to a pro-liquidity market favorable for a $BTC bull run.
• The US election and upcoming Fed meeting will largely determine the outlook for the next months.

Look at the crypto market on any given day, and you'll likely see a volatile mess of random and unexpected price swings.

But as with any financial market, there are longer-term patterns at play. Now, one of those patterns may be poised to push $BTC to a new all-time high.

Will the US elections and the forthcoming Fed meeting accelerate the push?

Let's dive in and find out.

The Summer of Selling Comes to a Close

During the spring and summer, $BTC saw major liquidity infusions and events that impacted supply and demand:

• Bitcoin halving event
• Germany sold $2.6B $BTC
• Mt. Gox repayments continued
• $BTC ETFs launched

Those events injected billions into the marketand raised concerns of over-supply, which could have led to price shocks if investors flooded the market.

Instead, investors demonstrated remarkable diamond hands even with the price of $BTC fluctuating dramatically throughout the summer.

Now, with the Mt. Gox repayments concluded, the liquidity infusions appear to be ending. $BTC's fluctuations after April's halving event fit an existing pattern: Thecoin typically struggles one to three months post-halving before finding its footing.

All together, $BTC could be entering a period of greater stabilityand even position itself for another bull run as 2024 draws to a close.

Rising Global Liquidity

Increasing liquidity raises selling pressure, but a long-term pro-liquidity environment is positive for $BTC and the broader crypto economy.

global liquidity is finally ticking up

will we see the greatest bull run ever in 2025???? pic.twitter.com/i0F1eQGowT

- kook (@KookCapitalLLC) August 19, 2024

Analysts find evidence for that belief in the recent performance of gold, which just hit an all-time high. $BTC often lags behind gold as investors look for reliable stores of value. However, when gold performs well, $BTC and the stock market often follow.

3/3 After Gold , both the #NSDQ and #Bitcoin follow, especially as liquidity stabilizes and investors seek higher returns in growth stocks. pic.twitter.com/wG8vni7rmw

- Francesco Madonna (@CiccioMadonna) August 17, 2024

A period of global liquidity could set the stage for $BTC to push higher throughout 2024 and into 2025.

What Will The Elections Say?

However, the US government (and the US people) will have a major say in what happens next. In the short term, a potential interest rate cut by the Fed could be the difference between crypto FUD or crypto fever.

And the winner of the US elections in November (whether Kamala Harris or Donald Trump) will significantly influence the US government's attitude towards crypto.

Regardless, analysts argue that macroeconomic conditions will remain stable potentially benefiting Bitcoin) whatever the U.S. election results.

Time to see if $BTC will push to new heights in 2025 or if the bears continue to hold Bitcoin hostage.

References

• Global liquidity is finally ticking up (Kook, X.com)
• Bitcoin sale nets German government $2.6B (Cointelegraph)
• Global liquidity started to increase (Francesco Madonna, X.com)

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