4 Key Reasons Why The Bitcoin Bull Run Is Far From Over

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Bitcoin bull run

In an analysis shared via X, renowned crypto analyst Ted (@tedtalksmacro) has provided compelling evidence to support his assertion that the current Bitcoin bull run is far from over. Ted’s insights are based on four critical indicators related to traditional finance and crypto liquidity, each pointing to sustained growth in the near future. Here’s a breakdown of his analysis:

#1 65-Month Liquidity Cycle

Ted highlights the 65-month liquidity cycle, a historical pattern that marks the ebb and flow of liquidity in financial markets. According to his analysis, this cycle bottomed out in October 2023, signaling the beginning of a new expansion phase.

“We are now in the expansion phase, which is expected to peak in 2026,” Ted stated. This projection aligns with the anticipated easing by central banks in response to slowing economic data over the next 18 to 24 months. Historically, increased liquidity has been a precursor to bull markets in various asset classes, including Bitcoin and the broader crypto ecosystem.

65 month liquidity cycle
65 month liquidity cycle | Source: @tedtalksmacro

#2 M2 Money Supply

The M2 money supply, which includes cash, checking deposits, and easily convertible near money, is another crucial indicator, if not the most important indicator of global liquidity. Ted notes that the rate of expansion in the M2 money supply is at its lowest since the 1990s.

“There is plenty of room to the upside for easing liquidity conditions,” he explained. As central banks potentially ease monetary policies to stimulate economies, increased M2 growth could lead to more capital flowing into risk assets like Bitcoin.

M2 money supply
M2 money supply | Source: @tedtalksmacro

#3 Crypto Liquidity

While liquidity has returned to the crypto markets, particularly with the introduction of spot Bitcoin ETFs, Ted points out that the velocity of inflows has not yet reached the levels seen at cycle tops. “The velocity of inflow has not yet seen a manic phase consistent with cycle tops,” he noted.

This suggests that while interest and investment in Bitcoin are growing, the market has not yet reached the speculative frenzy that typically precedes a major correction. This phase of measured inflow can provide a more stable foundation for continued price increases.

Crypto liquidity
Crypto liquidity | Source: @tedtalksmacro

#4 Spot Bitcoin ETF Flows

The US based spot Bitcoin ETFs have seen significant inflows, with last week alone witnessing $950 million flowing into spot Bitcoin ETFs in the US, the largest net inflow since March. Ted expects these inflows to increase as Bitcoin’s price rises and traditional finance investors regain confidence in the asset.

“Expect these to only increase as price drifts higher and tradFi once again renew faith in the asset,” he stated. The growing acceptance and investment from institutional investors via ETFs are a strong bullish indicator for Bitcoin’s continued ascent.

Bitcoin ETF flows
Spot Bitcoin ETF flows | Source: @tedtalksmacro

Each of these factors points to a sustained and robust bull market for Bitcoin. Ted’s analysis, grounded in traditional financial indicators and crypto-specific data, provides a comprehensive outlook on the current and future state of the Bitcoin market. As central banks potentially ease monetary policies and institutional interest continues to grow, the conditions appear ripe for Bitcoin’s bull run to extend well into the coming years.

At press time, BTC traded at $66,602.

Bitcoin price
BTC price, 1-day chart | Source: BTCUSD on TradingView.com

Featured image created with DALL·E, chart from TradingView.com

Jake Simmons

Jake Simmons

Jake Simmons, a dedicated crypto journalist, has been passionate about Bitcoin since 2016 when he first learned about it. Through his extensive work with NewsBTC.com and Bitcoinist.com, Jake has become a trusted voice in the crypto community, guiding newcomers and seasoned enthusiasts alike towards a deeper understanding of this dynamic field. His mission is simple yet profound: to demystify Bitcoin and cryptocurrencies and make them accessible to everyone. With a professional career in the Bitcoin and crypto scene that began right after graduating with a degree in Information Systems in 2017, Jake has immersed himself in the industry. Jake joined the NewsBTC Group in late 2022. His educational background provides him with the technical prowess and analytical skills necessary to dissect complex topics and present them in an understandable format. Whether you are a casual reader curious about Bitcoin or an investor seeking to navigate the latest market trends, Jake’s insights offer valuable perspectives that bridge the gap between complex technology and everyday usage. Jake is not just a reporter on technological trends; he is a firm believer in the transformative potential of Bitcoin over traditional fiat currencies. To him, the current financial system is on the brink of chaos, propelled by unchecked government actions and flawed Keynesian economic policies. Drawing from the principles of the Austrian school of economics, Jake views Bitcoin not merely as a digital asset but as a crucial step towards rectifying a failing monetary system. His libertarian views reinforce his stance that just as the church was separated from the state, so too should money be freed from governmental control. For Jake, Bitcoin represents more than just an investment; it’s a peaceful revolution. He envisions a future where Bitcoin fosters a sustainable and responsible financial framework for generations to come. His advocacy is not about opposition but about evolution, about laying the groundwork for a system that prioritizes transparency and equity over secrecy and inequality. As a journalist, Jake’s articles are crafted with the precision of a scholar and the passion of a true believer. He provides not only news but also thoughtful analysis that connects the dots between daily developments and larger economic theories. His work is a beacon for those lost in the technical jargon often associated with crypto discussions, illuminating the practical implications and benefits of these technologies. In summary, Jake Simmons is not just reporting on a revolution; he wants to be part of it, fully committed to enhancing public understanding and adoption of Bitcoin and cryptocurrencies. His work is more than just a collection of articles; it’s a resource, a guide, and a companion for anyone ready to explore the potential of this digital frontier. Whether you are taking your first steps into crypto or are a veteran looking to stay on top of the latest trends, Jake’s insights provide clarity and foresight in an often unpredictable industry. Join him on this journey to reshape the world of finance, one post at a time. You can engage with his latest takes on Twitter: @realJakeSimmons.

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