For months, the crypto markets, spearheaded by Bitcoin (BTC), languished in a constrained and subdued trading range, lacking significant catalysts.
However, a paradigm shift unfolded in the past month, fueled by renewed optimism. The resurgence stems from mounting confidence that US regulators may greenlight the inaugural spot Bitcoin exchange-traded fund (ETF) – perhaps even before the end of 2023.
This newfound positivity propelled BTC beyond $37,000 last week, marking its first ascent above that threshold since April 2022.
Crucially, alongside this resurgence of optimism came a resurgence of liquidity, historically indicative of impending significant bull markets.
Crypto market adds $600 billion in liquidity in a year
For the first time in several years, the cryptocurrency markets are witnessing a return of “tons of new liquidity, The Kobeissi Letter, a well-known commentator of the global capital markets, said in a November 12 post on X.
According to the account, crypto has added $600 billion in value over the past year, marking a 75% jump. Over the same period, Bitcoin’s value surged by 120%.
“This comes after years of consistent outflows from crypto markets.”
– The Kobeissi noted.
Most notably, the resurgence in liquidity is seen as a vital bullish indicator. As the popular X account put it, “A return of liquidity always causes historic moves in crypto.”
The total crypto market cap is currently sitting at around $1.46 trillion, the highest since May 2022.
Bitcoin price analysis
At the time of writing on November 13, BTC was changing hands at $36,996, down 0.4% on the day.
The maiden cryptocurrency gained around 4% over the past week and more than 37% on the monthly chart, adding roughly $200 billion in market cap over this period.
Year-to-date, BTC is up 123%, marking an impressive surge from the $16,600 it was trading at on January 1, 2023.
On November 10, pseudonymous crypto analyst el_crypto_prof said that BTC may be facing “the biggest bull run ever.” His analysis was predominantly based on the emergence of a rare buy signal on the M-Chart, which last emerged eight years ago.
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