Insight: Global Liquidity Continues to Grow, Crypto Market May See Trend Reversal Supported by Policy and Stablecoins

BlockBeats News, March 8th, Raoul Pal, Co-Founder and CEO of Real Vision, wrote that "Global liquidity is the most significant macro factor in history. Since 2012, it has a correlation of about 90% with Bitcoin and as high as 97% with the Nasdaq 100 Index. Currently, global liquidity is growing by approximately 10% per year, and there are no signs of slowing down.

The GMI Financial Conditions Index usually leads global liquidity by about 6 months, and currently, the index remains in a consistently easy state. There will likely be more rate cuts in the U.S. in the future, which will boost disposable income, increasing the willingness to invest in risk assets. The "CLARITY Act" is likely to be passed, which will bring new fund inflows. Many banks and asset management institutions are eager to use this technology, and the act will provide a clear regulatory framework for this. Stablecoins are growing rapidly, with a 50% increase in issuance last year, and the growth is still accelerating. The U.S. currently has the most crypto-friendly government environment in history.

Finally, AI agents are coming and may bring exponential growth, forming a huge new market. Meanwhile, the crypto market is currently in a state of panic, with most indicators suggesting that the market is close to one of the most oversold levels in history. The weekly DeMark indicator is expected to form a very solid bottom structure in two weeks. If there is some further pullback, it may complete the resonance of the daily and weekly signals, potentially leading to a comprehensive trend reversal. The current biggest risk factor is: how long will oil prices remain high. The next two weeks are a key observation window. I believe that ultimately, all of this will develop in a positive direction."