Crypto Scenario Insights

Will TradFi's Liquidity Gauge Trigger the Next Major Bitcoin Cycle by 2026?

What happened

A key traditional finance liquidity metric has retraced to near-zero levels, suggesting a lack of immediate capital inflows into the crypto market despite historically 'cheap' valuations.

What we think

From a capital flows perspective, the relationship between TradFi liquidity indices and Bitcoin's price performance is highly correlated.

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Will TradFi's Liquidity Gauge Trigger the Next Major Bitcoin Cycle by 2026?

We explain what happened and what could follow. We do not forecast prices.

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