In the aftermath of the November 2022 fear-fueled market lows, early crypto investors who made bold buys are now sitting on handsome returns. Yet despite this optimism, the crypto market has not fully entered a classic, euphoric bull phase. Many investors are still anticipating a 2021-style frenzy—while skeptics argue such a rally is unlikely. However, seasoned market participants know better: every bull market begins with disbelief.
And this time, the engine behind the next surge might be the explosive growth in global liquidity and M2 money supply.
Global Money Supply Reaches All-Time Highs
Quinten François, a well-known market analyst, recently shared a chart showing that global M2 money supply and liquidity have reached record-breaking levels. This is significant. China is frequently injecting liquidity into its economy, the European Central Bank continues to lower interest rates, and many other countries are already approaching historically low interest levels.
The Federal Reserve, however, remains the key missing puzzle piece. While inflation has stalled its descent—largely due to tariffs and policy uncertainty that have weighed on markets for the past six months—there hasn’t been the feared inflationary spike. With inflationary fears fading and liquidity surging, many believe the Fed must start cutting interest rates soon to align with the global trend. That could ignite the long-awaited crypto bull run.
According to Dey There analysts, the key catalyst for widespread crypto enthusiasm may arrive the moment the Fed pivots.
Altcoins Under Pressure, But Optimism Persists
Altcoins have continued to show moderate weakness, with daily losses of around 1–2%. But geopolitical shifts are raising eyebrows: President Putin mentioned potential economic cooperation with the U.S., the Russia-Ukraine conflict appears to be nearing resolution, and Iran just signed a trade agreement with China. These macro shifts could pave the way for renewed investor confidence in risk assets like crypto.
The pseudonymous trader Altcoin Sherpa commented on SEI Coin, stating:
“Watched it last night but didn’t pull the trigger. I was planning to enter at 0.50 and 0.618 fib levels, but I’ve been mostly offline. Enjoy the weekend!”
BTC Technical Setup Looks Bullish
Another respected analyst, elle, believes the conditions are ripe for a Bitcoin breakout. She highlighted the following on social media:
- Trendline has broken
- Support retested
- Local bottoms already tested
- A bullish weekly candle forming
- What’s next? A rally.
With just one more trading day and a weekend left before the new week, optimism is building that Bitcoin could soon lead the next phase of market momentum.
Conclusion: Liquidity-Driven Hope for Bulls
While the crypto market is still lacking the parabolic price action that defines true bull markets, the fundamentals are lining up. Global liquidity is expanding rapidly, central banks are easing policy, and the U.S. Federal Reserve stands at a crucial crossroads.
If history is any guide, markets don’t wait for confirmation—they anticipate it. The next leg up may already be forming beneath the surface.
Stay tuned with Dey There for timely updates and deeper analysis.
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