According to a recent study by the researcher in Crypto Mark markets, the increase in the global liquidity index (Global Liquidity Index – GLI) could be a key factor in recovery from the cryptocurrency market. This dynamic could propel the total capitalization of the market beyond 4,000 billion dollars in the second quarter of 2025, thus reaching new historical heights.
Crypto: global liquidity as a key indicator
Mark's analysis is based on the historical correlation between global liquidity and total capitalization of the crypto market ($ total). By superimposing these two indicators on a graph, a correlation of 0.77 is observed with a 74 -day lag. This means that the evolution of global liquidity often precedes that of the cryptocurrency market, making it a relevant advanced indicator.
Historically, an expansion of liquidity precedes the bullish trends in risk assets, which are part of cryptos. After this analysisthe period between the end of March and early April could mark the start of an environment more favorable to these assets.
$ 4,000 billion in sight for the Crypto market!
Currently, the market is in a stabilization phase. Over the next 30 days (orange zone), prices should remain in a dynamic of slight recovery or evolution of sawtooth, while the liquidity conditions are fully stabilized.
However, once this liquidity is entirely integrated into the market, the total capitalization of cryptocurrencies could exceed $ 4,000 billion, in accordance with the previous bullish cycles stimulated by liquidity.
Soon the Bull Run of Bitcoin?
The current stabilization of the Crypto market, followed by a potential increase in capitalization beyond $ 4,000 billion, could trigger a major Bull Run for Bitcoin. This dynamic would be amplified by Donald Trump's recent decree, which erects the BTC as a state active, thus strengthening its legitimacy and attracting a wave of institutional investments.
Despite these optimistic prospects, Mark as well recalls the importance of the discipline. Although favorable winds are starting to train, such as the fall in the dollar, the crypto market remains in the transitional phase. The next sustainable upward trend will arrive, but it will require patience.
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