America May Want A Recession, But China Doesn’t

Reasons to Expect Bitcoin to (Tactically) Bounce

No question, the recent gyrations in the price of Bitcoin owe something to the recent ‘air pocket’ in Global Liquidity, as evidenced by the chart below. Yet, this is not the full story, because while Bitcoin has languished gold bullion, the other key monetary inflation hedge, has soared to new all-time highs. What is going on?

The chart shows the 6 week changes in both Global Liquidity ($GLI) and the Bitcoin (BTC$) price (6 weeks is just a filter to remove ‘noise’), with Global Liquidity leading and advanced forward by 13 weeks (3 months) so that it predicts. The scatter plot, below the first chart, gives an idea of the robustness of this relationship and the high sensitivity of crypto to ‘liquidity’.