The chief crypto analyst at Real Vision believes that Bitcoin (BTC) could soon experience a series of rallies, as macroeconomic conditions may improve later this year.
In a recent thread, crypto strategist Jamie Coutts shared with his 37,300 followers on the social media platform X that market liquidity is anticipated to rise in the latter half of 2025, which could boost Bitcoin’s price.
“The crucial takeaway is that if Bitcoin manages to rally amid the worst liquidity contraction in decades, it’s set for more substantial movements as conditions improve throughout the year. Keep an eye on the blue line [Base Money Liquidity to Debt Ratio], which is expected to start trending upward in the second half of the year.”
Coutts not only forecasts that the money supply will grow faster than U.S. debt but also anticipates increased Bitcoin adoption among U.S. banks and sovereign wealth funds, thereby enhancing the value of the leading crypto asset.
“It’s more likely that base money will outpace government debt growth. What occurs if base money increases faster than U.S. debt? In some scenarios, this could stabilize the situation and reduce the anxiety driving Bitcoin adoption. However, I believe this only impacts the margins.
Meanwhile, deeper integration of Bitcoin at both sovereign and banking levels is unavoidable. Ultimately, U.S. structural deficits remain unchanged. The U.S. government will need to devise new and innovative methods to ensure continued demand for their debt.”
As of now, Bitcoin is trading at $84,090, remaining unchanged for the day.
Follow us on X, Facebook, and Telegram
Stay Updated – Subscribe to receive email alerts straight to your inbox
Check Price Movements
Explore The Daily Hodl Mix
Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be aware that your transfers and trades are at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it act as an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
