Opinion: Global liquidity continues to grow, and under the support of policies and stablecoins, the crypto market may experience a trend reversal

Mars Finance News, March 8 — Raoul Pal, co-founder and CEO of Real Vision, stated, “Global liquidity is the most significant macro factor in history. Since 2012, its correlation with Bitcoin has been about 90%, and with the Nasdaq 100 index, as high as 97%. Currently, global liquidity is growing by approximately 10% annually, with no signs of slowing down. The GMI Financial Conditions Index typically leads global liquidity by about six months, and it remains in a consistently accommodative state. More interest rate cuts are expected in the U.S., which will increase disposable income and boost risk asset investments. The CLARITY Act is likely to pass, bringing in new capital flows. Many banks and asset management firms want to use this technology, and the bill will provide a clear regulatory framework for it. Stablecoins are growing rapidly, with issuance increasing by 50% last year and still accelerating. The U.S. currently has the most supportive government environment for the crypto industry in history. Finally, AI agents are arriving and could bring exponential growth, creating a whole new massive market. Meanwhile, the crypto market remains in panic mode, and according to most indicators, it is approaching one of the most oversold levels in history. The weekly DeMark indicator is expected to form a solid bottom within two weeks. If there are further pullbacks, it could resonate with daily and weekly signals, potentially leading to a full trend reversal. The biggest current risk factor is how long oil prices will stay high. The next two weeks are a critical observation window. I believe all of this will ultimately develop positively.”