Crypto Market Poised for Surge as Global Liquidity Expands 20%

In the wake of the November 2022 market lows, early crypto investors who made bold purchases are now enjoying substantial returns. However, the crypto market has yet to fully enter a classic, euphoric bull phase. Many investors are hoping for a repeat of the 2021 frenzy, while skeptics argue that such a rally is unlikely. Seasoned market participants understand that every bull market begins with disbelief.

The driving force behind the next surge in the crypto market could be the explosive growth in global liquidity and M2 money supply. A well-known market analyst recently shared a chart indicating that global M2 money supply and liquidity have reached unprecedented levels. This is significant as China frequently injects liquidity into its economy, the European Central Bank continues to lower interest rates, and many other countries are approaching historically low interest levels.

The Federal Reserve remains a key factor in this equation. While inflation has stalled its descent, largely due to tariffs and policy uncertainty, there hasn’t been the feared inflationary spike. With inflationary fears fading and liquidity surging, many believe the Fed must start cutting interest rates soon to align with the global trend. This could ignite the long-awaited crypto bull run. According to analysts, the key catalyst for widespread crypto enthusiasm may arrive the moment the Fed pivots.

Altcoins have continued to show moderate weakness, with daily losses of around 1–2%. However, geopolitical shifts are raising eyebrows. These macro shifts could pave the way for renewed investor confidence in risk assets like crypto. A pseudonymous trader commented on SEI Coin, stating that they were planning to enter at specific levels but had been mostly offline.

Another respected analyst believes the conditions are ripe for a Bitcoin breakout. She highlighted several technical indicators, including a broken trendline, retested support, local bottoms already tested, and a bullish weekly candle forming. With just one more trading day and a weekend left before the new week, optimism is building that Bitcoin could soon lead the next phase of market momentum.

While the crypto market is still lacking the parabolic price action that defines true bull markets, the fundamentals are lining up. Global liquidity is expanding rapidly, central banks are easing policy, and the U.S. Federal Reserve stands at a crucial crossroads. If history is any guide, markets don’t wait for confirmation—they anticipate it. The next leg up may already be forming beneath the surface.