In an analysis shared via Ted's ideas are based on four critical indicators related to traditional finance and crypto liquidity, each pointing toward sustained growth in the near future. Here is an overview of his analysis:
#1 65-month liquidity cycle
Ted highlights the 65-month liquidity cycle, a historical pattern that marks the ebb and flow of liquidity in financial markets. According to his analysis, this ride a bike reached its low point in October 2023, signaling the start of a new phase of expansion.
“We are now in the expansion phase, which is expected to peak in 2026,” Ted said. This projection aligns with central banks' planned easing in response to slowing economic data over the next 18 to 24 months. Historically, increased liquidity has been a precursor to bull markets in various asset classes, including Bitcoin and the broader crypto ecosystem.
![65 month liquidity cycle](https://www.newsbtc.com/wp-content/uploads/2024/05/65-month-liquidity-cycle.jpg?resize=2452%2C1616)
#2 Money supply M2
Another crucial indicator, if not the most important indicator global liquidity. Ted notes that the rate of expansion of the M2 money supply is at its lowest level since the 1990s.
“There is ample room for upside to ease liquidity conditions,” he explained. While central banks could ease monetary policies to stimulate economies, increased M2 growth could lead to increased capital inflows into risky assets like Bitcoin.
![Money supply M2](https://www.newsbtc.com/wp-content/uploads/2024/05/M2-money-supply.jpg?resize=2450%2C1614)
#3 Crypto Liquidity
If liquidity has returned to the cryptocurrency markets, particularly with the introduction of spot Bitcoin ETFs, Ted points out that the speed of inflows has not yet reached the levels seen at the peaks of the cycle. “The speed of the influx has not yet experienced a manic phase consistent with cycle peaks,” he noted.
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This suggests that although interest and investment in Bitcoin is increasing, the market has not yet reached the speculative frenzy that typically precedes a major correction. This phase of measured inflow can provide a more stable basis for continued price rises.
![Crypto Liquidity](https://www.newsbtc.com/wp-content/uploads/2024/05/Crypto-liquidity.jpg?resize=2452%2C1616)
#4 Spot Bitcoin ETF Flow
US-based spot Bitcoin ETFs have seen significant inflows, last week alone saw $950 million flow into US-based spot Bitcoin ETFs, the largest net inflow since March. Ted expects these flows to increase as the price of Bitcoin rises and traditional financial investors regain confidence in the asset.
“Expect these to only increase as prices rise and tradFi renews confidence in the asset again,” he said. The growing acceptance and investment from institutional investors via ETFs is a strong bullish indicator of Bitcoin's continued rise.
![Bitcoin ETF Feed](https://www.newsbtc.com/wp-content/uploads/2024/05/Bitcoin-ETF-flows.jpg?resize=2450%2C1614)
Each of these factors indicates a sustainable and robust bull market for Bitcoin. Ted's analysis, based on traditional financial indicators and cryptocurrency-specific data, provides a comprehensive view of the current and future state of the Bitcoin market. As central banks potentially ease monetary policies and institutional interest continues to grow, conditions appear ripe for Bitcoin's bull run to continue for years to come.
At press time, BTC was trading at $66,602.
![Bitcoin Price](https://www.newsbtc.com/wp-content/uploads/2024/05/BTCUSD_2024-05-20_09-26-13.png?resize=3628%2C1675)
Featured image created with DALL·E, chart from TradingView.com