Bitcoin may be entering a new phase of growth, according to a leading market analyst, who links the cryptocurrency’s recent price increase to rising global liquidity. The claim comes as Bitcoin trades near $108,000 after a strong second-quarter performance in 2025.
Jamie Coutts, Chief Crypto Analyst at Real Vision, believes Bitcoin’s price is closely tied to how much liquidity is in the global financial system. Based on his research, a 1% increase in global liquidity could lead to a 20% rise in Bitcoin’s price.
This view is gaining attention as investors look for signals that might guide the next major move in crypto markets.
Coutts tracks financial liquidity through his proprietary Global Liquidity Index (GLI), which measures the total amount of money in the system. On April 10, 2025, this index reached a new all-time high, ending a three-year flat trend. In the nine weeks since then, Bitcoin has climbed around 40%.
According to Coutts, this performance isn’t a coincidence. He says Bitcoin’s sharp move upward matches how the digital asset has historically reacted when new liquidity enters global markets. “Bitcoin has rallied 40% since the breakout in global liquidity,” he wrote on social media. “That pattern is in line with similar past cycles.”
Global liquidity refers to the amount of capital that central banks and governments pump into the economy. It includes cash in circulation, central bank balance sheets, and other financial tools like Treasury accounts or reverse-repo operations. In simple terms, when there’s more money in the system, investors and businesses are more willing to take risks—and some of that money flows into assets like Bitcoin.
Coutts uses data from major central banks, including the U.S. Federal Reserve, European Central Bank, Bank of Japan, and the People’s Bank of China, to build his index. He also includes figures from the U.S. Treasury and other sources to get a full picture of how much money is moving in global markets.
One key takeaway from Coutts’ research is that Bitcoin reacts most strongly at the beginning of liquidity cycles. In these early stages, price increases can be large and fast. The chart he shared shows how Bitcoin’s movements since 2018 have closely followed changes in the liquidity index.
Right now, Coutts sees no sign that this new wave of liquidity is slowing down. Despite the Federal Reserve continuing to pull back on some monetary tools, other central banks—such as China’s—are expanding their balance sheets. The European Central Bank is also discussing ways to support the economy, which could further add to global liquidity.
Looking ahead, many economic experts expect global liquidity to keep rising. Forecasts suggest that:
Liquidity could increase between 1% and 6% over the next 12 months
A cumulative rise of 3% to 8% may happen by mid-2027
Long-term growth of 10% to 15% is possible by 2030
If Coutts’ 1-to-20 model proves accurate, even a modest 5% growth in liquidity could lead to a 100% jump in Bitcoin’s price. This would push BTC into the $200,000 range well before the end of the decade.
While liquidity growth is one major factor, Coutts also points to human behavior as another. He suggests that as prices rise and Bitcoin becomes more attractive, retail and institutional investors may rush in all at once. This kind of sudden demand could lead to fast and unpredictable price movements.
He refers to this moment as a potential “panic buying” event—when people who have been waiting on the sidelines decide to buy in quickly, fearing they’re missing the opportunity. While this can drive prices higher in the short term, it also brings volatility.
Coutts’ analysis aligns with other voices in the crypto space that argue Bitcoin is still undervalued. Some investment firms, like Bitwise, have stated that Bitcoin’s “fair value” might be closer to $230,000 based on market fundamentals, demand growth, and institutional interest.
As governments continue to manage debt and adjust monetary policy, more liquidity could enter the system, potentially benefiting Bitcoin and other digital assets.
For those following Bitcoin or investing in crypto, tracking global liquidity may become just as important as watching charts or reading headlines. Coutts’ research suggests that Bitcoin remains highly sensitive to how much money is flowing through the global economy.
If central banks and governments continue to support growth through liquidity measures, Bitcoin may have room to grow—even without major new technology or platform developments. That possibility could reshape how investors view Bitcoin in the years ahead.
Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.
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