Bitcoin Could Nearly Double as Global Liquidity Hits Record High, Says Analyst

According to Coutts, total global liquidity has reached an all-time high of nearly $140 trillion, following years of contraction.

Coutts noted on X (formerly Twitter) that liquidity is a historic driver of asset price explosions. With central banks increasingly lagging behind economic developments, he forecasts a possible 10% rise in global liquidity — equivalent to about $13 trillion — over the next year.

“This would equate to $186,000 BTC using a blended regression model,” he wrote. “Those who held steady and accumulated during recent market turbulence should be better for it in what comes next.”

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With central banks clearly behind the curve, we could see global liquidity rise by approx. 10% or $13T over the next 12 months. This would equate to $186,000 BTC using a blended regression model.

Those who held steady and accumulated during recent market turbulence should… pic.twitter.com/axtshD0yba

— Jamie Coutts CMT (@Jamie1Coutts) April 23, 2025

Volatility Favors Bitcoin Over Traditional Assets

Coutts also addressed the changing volatility dynamics between crypto and traditional markets. He observed that Bitcoin’s volatility has been decreasing, while traditional assets like bonds and equities are becoming more unstable.

“Volatility isn’t the enemy, provided you’re being compensated by higher returns,” he explained. “That is not the case for Bonds and Equities relative to Bitcoin.”

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How to Invest in Bitcoin According to Former Goldman Sachs Executive

His analysis highlights that over the past four months, Bitcoin’s volatility-adjusted return stood at -7.12, compared to the S&P 500 index’s -45.08. This metric, known as volatility-normalized return, gauges how well an asset performs relative to its price fluctuations — higher values signal better risk-adjusted returns.

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