Jamie Coutts, Real Vision’s head digital asset analyst, said the current rise in the crypto market has not yet been completed. According to the analyst, the historical relationship observed between global money supply (m2) and the number of active addresses on Blockchain gives signals of more increase in the market.
Global liquidity and blockchain interaction
The analyst’s statements underlines that global liquidity plays an important role in directing asset prices. At the same time, it is noted that the increase in the number of active addresses in blockchain networks reflects the adoption rate. The parallelism between these two indicators is seen as the main reference in monitoring market dynamics.
Jamie Coutts: “We know that global liquidity determines asset prices. We also observe that network activity, namely adoption, forms the basis of prices. When we match global liquidity and active blockchain addresses, we see that they both tell the same story: crypto is an entity with high beta effect on liquidity and structural growth potential. It is necessary to keep the distance wide; There is still a way for this process. “
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Jamie Coutts: “With the effect of weak dollars, the rise in global liquidity is observed. As the Central Bank approaches the interventions, the exit on the mid -2024 summit will confirm the new regime. ”
Crypto coins can rise
Jamie Coutts said that liquidity is in the rise trend and that this acceleration was supported by the weakening of the dollar.
Jamie Coutts: “The world’s largest sovereign reserve fund is accumulating BTC. Although this is an important development, it should not be forgotten that many developing countries with domestic crypto asset mining have been stocking BTC for more than a year through dominant reserve funds or auxiliary organizations. This trend will increase over time. ”
Analyst’s assessments indicate that global liquidity and blockchain address activities are effective on market prices. These data show that the crypto market has structural growth potential and high volatility.
Explanations include signals that investors and market observers should closely follow international monetary policies and digital assets strategies. The data is considered as an indication that the increase in liquidity and the expansion of the digital asset portfolios of states may be more active in the future.
- Global liquidity affects the crypto market.
- Active addresses reflect price dynamics. The data paves the way for a larger rise in crypto currencies.
- States interact with crypto currencies in various methods and add to their balance sheets.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
