Global Liquidity Rebounds 4.2% Spark Crypto Bull Market Hopes

Global liquidity has begun rebounding after a recent sharp decline, reigniting discussions about the potential for a crypto bull market revival. This development comes amid a broad market correction that saw major cryptocurrencies such as Bitcoin and Ethereum experience significant price drops. The renewed liquidity—defined as the combined money supply and credit availability in major economies—is seen as a crucial macroeconomic driver for crypto market cycles [1].

Market analysts have long highlighted the strong correlation between global liquidity and crypto price movements. When liquidity increases, more capital becomes available to flow into high-risk, high-reward assets like digital currencies. This trend historically has underpinned major crypto bull runs, particularly during periods of monetary expansion and accommodative central bank policies [1].

Ted (@TedPillows), a noted crypto analyst, previously observed that Bitcoin reached $120,000 without a significant policy shift from the U.S. Federal Reserve, largely due to expanding liquidity. This suggests that capital availability can play a more immediate role in crypto price dynamics than traditional monetary policy decisions [1]. With liquidity levels now showing signs of recovery, the market is cautiously optimistic that the recent downturn might represent a temporary pause rather than a sustained bear trend.

Crypto Rover, a prominent analyst on social media, posted on August 4, 2025, that global liquidity is ticking up again after the drop, raising the question of whether this will be enough to revive the bull market [1]. The timing of this rebound appears to align with expectations for a Fed rate cut in September, which could further boost investor sentiment. Analysts are watching closely to see if this confluence of factors—rising liquidity, dovish central bank signals, and improving economic data—can create the conditions for a strong rally in the fourth quarter of 2025.

A key focus for market participants is whether the current liquidity rebound will be sufficient to rekindle bullish momentum. If historical patterns hold, rising liquidity often precedes periods of strong crypto price action. With the market beginning to price in a more favorable macroeconomic environment, the stage may be set for renewed buying interest, especially if regulatory clarity and institutional adoption continue to gain traction.

Source: [1] Global Liquidity Rise Could Revive Crypto Bull Run

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