4 reasons why the Bitcoin price increase is far from over

In the analysis shared by renowned crypto analyst Ted (@tedtalksmacro), he provided compelling evidence to support his claim that the current Bitcoin price rally is far from over.

Ted's arguments are based on 4 important indicators related to traditional finance and the liquidity of cryptocurrencies, each indicator indicating sustainable growth in the near future.

#1. 65-month Liquidity Cycle

Ted emphasizes the 65-month liquidity cycle, a historical model marking the fluctuation of liquidity in the financial market. According to his analysis, this cycle will hit bottom in October 2023, signaling the beginning of a new expansion phase.

"Ted said: 'We are currently in an expansion phase, expected to peak in 2026.' This forecast aligns with the central banks' plan to loosen policies in response to the economic slowdown in the next 18 to 24 months."

In the past, increasing liquidity has been a precursor to rising markets in various asset classes, including Bitcoin and the broader cryptocurrency ecosystem.

65-month liquidity cycle | Source: @tedtalksmacro

#2. Money Supply M2

The money supply M2, including cash, demand deposits, and easily convertible money, is another important indicator. This is the most important indicator of global liquidity.

Ted notes that the growth rate of M2 money supply is at its lowest level since the 1990s.

"There is a high possibility of price increases to ease liquidity conditions," he explained. When central banks have the ability to loosen monetary policies to stimulate the economy, an increase in M2 growth can generate capital flows into risky assets like Bitcoin.

M2 money supply | Source: @tedtalksmacro

#3. Cryptocurrency Liquidity

Although liquidity has returned to the crypto market, especially with the emergence of Bitcoin ETFs, Ted pointed out that the pace of capital flow has not reached the level seen at the peak of the cycle.

"Please note: "The speed of the capital flow has not yet reached the appropriate exuberant phase of the cycle peak"."

This shows that, although interest and investment in Bitcoin are increasing, the market has not yet reached the level of speculative frenzy that often occurs before a major correction. Therefore, this signal may provide a stable foundation for continued growth.

Cryptocurrency liquidity | Source: @tedtalksmacro

#4. Bitcoin ETF Cash Market

The Bitcoin ETF funds based in the United States have witnessed significant capital inflows, with just last week alone, these funds saw $950 million flowing in, the largest net inflow since March 2024.

You are expected to translate the following text from Vietnamese to English: "Ông kỳ vọng dòng vốn vẫn sẽ tiếp tục chảy vào mạnh mẽ khi giá tăng cao hơn và thị trường tài chính truyền thống một lần nữa lấy lại niềm tin vào tài sản tiền điện tử. Sự chấp nhận và đầu tư ngày càng tăng từ các tổ chức đầu tư thông qua ETF là chỉ báo tăng giá mạnh mẽ, cho thấy Bitcoin vẫn sẽ tiếp tục đi lên."

Translated text: "He expects that the capital flow will continue to pour in strongly as prices rise higher and the traditional financial market regains confidence in cryptocurrency assets. Increasing acceptance and investment from investment institutions through ETFs indicate a strong price increase, showing that Bitcoin will continue to rise."

Bitcoin ETF capital flow | Source: @tedtalksmacro

All of these elements point to a sustainable and strong market price for Bitcoin.

Ted's analysis, based on traditional financial indicators and specific data on crypto, provides a comprehensive view of the current and future state of the Bitcoin market.

When central banks are able to loosen monetary policy and investment institutions are increasingly interested in crypto, the conditions seem to be ripe for triggering a prolonged price increase of Bitcoin in the coming years.

At the current time, BTC is trading around $66,800.

BTC price chart - 1 day | Source: TradingView