Bitcoin Could Nearly Double as Global Liquidity Hits Record High, Says Analyst
According to Coutts, total global liquidity has reached an all-time high of nearly $140 trillion, following years of contraction.
Coutts noted on X (formerly Twitter) that liquidity is a historic driver of asset price explosions. With central banks increasingly lagging behind economic developments, he forecasts a possible 10% rise in global liquidity equivalent to about $13 trillion over the next year.
This would equate to $186,000 BTC using a blended regression model, he wrote. Those who held steady and accumulated during recent market turbulence should be better for it in what comes next.
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With central banks clearly behind the curve, we could see global Liquidity
" >liquidity rise by approx. 10% or $13T over the next 12 months. This would equate to $186,000 BTC using a blended regression model.The ability to quickly convert a digital currency or token into another asset or cash without affecting its price.
Those who held steady and accumulated during recent market turbulence should pic.twitter.com/axtshD0yba
Jamie Coutts CMT (@Jamie1Coutts) April 23, 2025
Volatility Favors Bitcoin Over Traditional Assets
Coutts also addressed the changing volatility dynamics between crypto and traditional markets. He observed that Bitcoins volatility has been decreasing, while traditional assets like bonds and equities are becoming more unstable.
Volatility isnt the enemy, provided youre being compensated by higher returns, he explained. That is not the case for Bonds and Equities relative to Bitcoin.
His analysis highlights that over the past four months, Bitcoins volatility-adjusted return stood at -7.12, compared to the S&P 500 indexs -45.08. This metric, known as volatility-normalized return, gauges how well an asset performs relative to its price fluctuations higher values signal better risk-adjusted returns.
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