Global Liquidity Hits Record—Bitcoin’s Next Move Could Shock Markets 

Since the breakout, GLI has climbed an additional 2%, aligning closely with Bitcoin’s recent Q2 rally. Coutts explains that this kind of price action is historically consistent with expanding liquidity regimes. His data suggests that for every 1% increase in global liquidity, BTC could see price gains of over 20%.

Bitcoin Liquidity Sensitivity Remains Strong

Although Bitcoin’s correlation with liquidity diminishes over time, Coutts emphasizes that the asset still responds sharply to system-wide liquidity injections.

The chart he shared shows a tight alignment between the GLI (white line) and Bitcoin’s price (orange line), especially during periods of macro expansion.

He cautions that while this model explains the ongoing capital flow into Bitcoin, it doesn’t capture what he calls the inevitable “oh shit” moment—a global panic-driven rush into BTC. That phase, he warns, hasn’t arrived yet, but it’s coming.

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Investor Sentiment Teeters Between Greed and Fear

As liquidity conditions improve and capital floods back into risk assets, Coutts foresees volatile extremes in sentiment. “It will be best of times, it will be the worst of times,” he notes, highlighting the double-edged nature of rising liquidity: while it fuels growth, it also amplifies risk and emotional trading cycles.

With liquidity hitting fresh highs and Bitcoin reacting in kind, market participants may be heading into a highly reactive and fast-moving phase—one where opportunity and volatility go hand in hand.

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