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Bitcoin’s blister-shaped second quarter Advance follows the strongest expansion of global liquidity on record, according to real vision Chief Crypto analyst Jamie Coutts, who claims that every extra percentage point of liquidity in the financial system should “” translate “into a 20% profit for the cryptocurrency.
1% liquidity = 20% bitcoin?
Writing On X, Coutts noted that his patented global liquidity index on 10 April after three years of Drift broke after three years of Drift and that Bitcoin has about 40 percent in the nine weeks thereafter. “Bitcoin has gathered 40% since 10 April, when when my global liquidity aggregate (GLI) broke out after 3 years to new all time high at the back of a falling US dollar. Since then it has been the aggregated 2%. Bitcoin’s Q2 -rally is completely consistent with liquidity registrants.”
He added that “while the sensitivity of Bitcoin for GLI models over time, for each extra 1 percent of the liquidity that has been added to the system, we would expect that we would expect a> 20 percent to move in the price of Bitcoin,” he said, further claim that the steady intake of capital “does not take the inevitable” moment “.
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The graph he has shared, reproduced above, covered his GLI (white) with daily Bitcoin prices (Orange) from 2018 to June 2025. It shows the index that presses around $ 138 trillion, while Bitcoin changes hands near $ 108,000, which the sleek change in different LiquiCycli.
Coutts builds the indicator by combining G4 Central-Bank balance sheets, wide money aggregates such as M2 and important American liquidity accounts, including the general account of the Treasury and the Reverse-Repel facility of the Federal Reserve. Since the breakout in April, the GLI has added only about two percentage points, but the market value of Bitcoin has already risen twice the elasticity that is implicated by his model – an outcome that he regards “fully consistent” with earlier liquidity regimes, which tend to produce the sharpest price reaction early in the cycle.
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For now he sees little evidence that the momentum of the GLI is struggling; Because the Federal Reserve still taps its reverse repo facility, the People’s Bank of China quietly expands its balance and the European Central Bank that hints on renewed renewable activities in the long term, the background remains structurally bullish, even if it will not be a straight line.
Furthermore, Mainstream Liquidity Survey suggests a modest but persistent growth: most macro agencies expect that worldwide aggregate will rise about one to six percent in the coming twelve months, three to eight percent cumulative halfway through 2027, and in the order of ten to fifteen percent against the turns of the decades in the Innensums inninsums If the rule of thumb of Coutts holds, even the low side of those projections would leave sufficient headroom for triple percentages in Bitcoin before 2030.
At the time of the press, BTC traded at $ 107,676.
Featured image made with dall.e, graph of tradingview.com