Bitcoin News

Story: This Bitcoin Cycle Changes Everything, Real Vision Analyst Explains Why

By Julie Binoche

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The cryptocurrency market is entering a distinct phase, according to Real Vision analyst Jamie Coutts, who explained that the current Bitcoin cycle is being influenced far more…

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Coutts highlighted that global liquidity, rather than supply halving events, is now the primary driver of risk assets, including Bitcoin.

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Despite some recent divergences between rising global liquidity and Bitcoin prices, especially since the launch of US spot ETFs, Coutts emphasized that the gap is within…

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Coutts anticipates a pivot in Western central-bank policies, predicting likely interest-rate cuts in upcoming meetings and potential tapering of balance-sheet reductions.

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Most money creation, Coutts noted, originates from commercial banks extending credit, accounting for 85%–90% of new money supply.

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Layered atop policy considerations is the business cycle. Coutts observed that the US is edging toward expansion, citing ISM readings above 50.

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China’s role is notable, Coutts explained, with the People’s Bank of China expanding its balance sheet amid property-led debt deflation and risk-asset revival efforts.

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Despite structural support, Coutts warned of caution in the short term. He flagged a weekly-timeframe bearish divergence in Bitcoin momentum as a genuine risk signal, drawing…

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A notable factor affecting near-term momentum is the cooling of corporate-treasury demand for Bitcoin.

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Coutts argued that the traditional “altseason” of 2021, characterized by indiscriminate speculation in Layer-1 and Layer-2 tokens, is unlikely to repeat.

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In Coutts’ view, this Bitcoin cycle differs from prior iterations, being driven less by supply shocks and more by liquidity conditions, policy actions, and macroeconomic cycles.

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As of press time, Bitcoin was trading at $112,946, reflecting the ongoing tug-of-war between structural bullish factors and short-term momentum constraints.

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