Surging Global Liquidity Could Be the Spark for Bitcoin’s Next Move

Bitcoin may be gearing up for another rally, and one key macro trend could be the driving force: a surge in global liquidity.

According to prominent analyst The Rational Root, the total money supply injected by major central banks is not only at all-time highs—it’s accelerating rapidly.

A chart shared by Root shows a steep climb in global liquidity, mapping capital flows from institutions like the Federal Reserve, European Central Bank, Bank of Japan, and the People’s Bank of China. Historically, Bitcoin’s price has moved in tandem with this global liquidity, a relationship highlighted once again by the data.

Global liquidity at an ATH, rising steeply. #Bitcoin pic.twitter.com/Ytg7PUe2Gz

— Root 🥕 (@therationalroot) April 14, 2025

Crypto analyst Dan Gambardello expanded on this idea, noting that when money supply indicators—particularly M2—trend upward, crypto markets often respond in kind.

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In a recent video breakdown, he pointed out that altcoins tend to break above their 20-day moving average within a few weeks after liquidity starts rising, suggesting a time-lagged response pattern that’s repeated over multiple market cycles.

Gambardello said this relationship dates back to at least 2023 and often follows a 5–26 day lag between liquidity expansion and price movements. He emphasized that this pattern isn’t just coincidental, describing it as an “anchor point” for understanding crypto’s macro behavior.

If the trend continues, rising liquidity could act as fuel for both Bitcoin and altcoins in the weeks ahead—especially if historical patterns hold.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.