Global Liquidity Index Forecasts Bitcoin to Reach New AllTime High in 2025
Bitcoin’s price is currently at $64,617, with a 1.9% drop over the last 24 hours. This decline in the crypto market has led to a decrease in the global crypto market cap by 3.29%. As a result, there has been a continuous outflow of money from spot Bitcoin ETFs, totaling $140 million in losses over the past five days.
Interestingly, the Global Liquidity Index (GLI) is closely aligned with Bitcoin’s price movements. The GLI is currently at its lowest point, suggesting that there will be a surge in liquidity in the near future. Historically, when liquidity increases, Bitcoin tends to experience bullish trends. Therefore, there is an expectation that Bitcoin’s price will continue to rise in the coming years.
Observers are closely monitoring the rise in the GLI, as it may indicate another significant surge in Bitcoin’s value. If the GLI continues to rise, it could potentially lead to a new peak for Bitcoin by 2025.
From a technical perspective, Bitcoin is currently trading below the 50-day moving average, but it remains above the 200-day moving average. This suggests that there may be short-term weakness, but long-term resilience for Bitcoin. If Bitcoin breaks above the 50-day moving average, it could reach $69,000 and potentially surpass its previous record of $73,808. On the other hand, if Bitcoin drops below $64,000, it may slide further to $60,365.
Although the open interest in Bitcoin contracts has slightly decreased to $19 billion, the Relative Strength Index (RSI) indicates that Bitcoin still has room to fall before reaching oversold levels. This suggests that there may be further downward movement in Bitcoin’s price before it starts to recover.
In conclusion, there are indications that Bitcoin’s price will reach new all-time highs by 2025. The rise in the Global Liquidity Index and the technical analysis of Bitcoin’s price suggest that there is potential for significant growth in the coming years. However, it is important to monitor these trends closely and consider the inherent volatility of the crypto market.