Global Liquidity Index (GLI) has surged, reflecting Bitcoin's recent Q2 rally.
GLI climb aligns with Bitcoin's price gains; historical data indicates BTC could see over 20% price increase for every 1% rise in global liquidity.
Bitcoin still notably responsive to system-wide liquidity injections; Coutts emphasizes its sensitivity despite diminishing correlation over time.
Chart depicting GLI and Bitcoin's price movements showcases strong alignment, particularly during macro expansion periods.
Model doesn't account for an anticipated panic-driven rush into BTC, indicated by the 'oh shit' moment dubbed by Coutts.
Investor sentiment fluctuates between greed and fear as liquidity conditions improve and capital flows back into risk assets.
With rising liquidity fueling growth but amplifying risk and emotional trading cycles, market participants might face a highly reactive phase of opportunity and volatility.