Why Bitcoin traders stay cautious despite global liquidity boom
Despite a significant expansion in global liquidity, with major economies like the U.S., China, Japan, and the Eurozone reaching record M2 money supply levels, Bitcoin (BTC) has not followed the expected upward trajectory and remains nearly 30% below its all-time high. Traders are exhibiting caution, and capital has not flowed aggressively into speculative markets like cryptocurrencies due to persistent uncertainty and tight financial conditions.
Analytical tools such as the Energy Value Oscillator indicate that BTC is at levels comparable to a decade ago, often associated with long-term cycle bottoms rather than market tops. The current cycle has not yet entered the overheated "red zone" typical of past bull market peaks, suggesting that the market is still in a buildup phase.
Overall, while liquidity conditions are favorable, risk assets including Bitcoin have not fully responded. The pressure continues to build, but the broader market movement remains pending. Derivatives market activity further confirms this hesitancy among traders.
ambcrypto12/29 04:03
