A recent study by Mark Quant suggests a crypto market recovery may be near. The Global Liquidity Index (GLI) could be a key factor. This boost could push total market value past $4 trillion by mid-2025. This could set new record highs.
Quant's analysis links global liquidity and crypto market value. He found a 0.77 correlation over time. Liquidity changes tend to lead the crypto market by about 74 days. This makes it a useful early signal.
Historically, more liquidity means good times for riskier assets like crypto. The study points to late March or early April as the start of a better period.
The crypto market is currently stable. Expect prices to recover slightly or stay flat for a month. This is while liquidity finds its place.
Once the market fully absorbs this liquidity, crypto's total value could jump past $4 trillion. This matches patterns from past bull runs driven by liquidity.
This could start a major bitcoin bull run. Donald Trump's recent order also helps. It recognizes BTC as a state asset. This could draw in more big investors.
Quant stresses the need for caution. The crypto market is still changing. Positive signs are emerging, like a weaker dollar. A lasting upturn is coming, but patience is needed.