The total market capitalization’s market cap reached a new all -time high of $ 3.73 trillion on December 14, 2024, but this indicator has since decreased 21%, $ 2.9 trillion.
Despite the current flaws, I think a analyst can reach the new best in the second quarter of 2025.
The total market cap and the global liquidity index are correlated.
MARK Quant, a crypto market researcher, has published a study that the Global Liquid Index (GLI) can take the recovery path of the encryption market, and in the second quarter of 2025, the upper limit of the total encryption market can be carried out at more than $ 4 trillion.
The Global Liquid Index (GLI) can be used as an indicator for understanding global financial conditions by measuring the ease of financing in the global financial market and understanding global financial conditions.
If the GLI rises, it indicates that investors can access more capital.
Bitcoin and global liquidity index. Source: X
As described in the chart, Quant explained that GLI and total market cap have a strong 0.77 correlation with offset on the 74th. As GLI became a major indicator, the expansion often led to strong cryptocurrency. The mayor can move sideways for the next 30 days, but the analyst predicts that he can start an optimistic rally in early April. Quant said.
“If the liquidity is completely priced, it matches the total market cap of $ 4T and coincides with the previous fluid center cycle.”
In a wider scale, Quant’s analysis brought about the study of Lyn Alden in September 2024. “Bitcoin: Global Locity Barometer” mentioned that 83%of the time was transferred to global liquidity for 12 months of Bitcoin.
Global liquidity and bitcoin direction alignment. Source: Lynalden.com
Compared to other major asset classes such as SPX, GOLD and VT, Bitcoin’s global liquidity correlation is the most. But encryption assets were sometimes exposed to short -term deviations through “unique events or internal market mechanics.”
Related: Why is encryption increasing today?
Is the encryption market on the floor?
Market analyst DOM said that the total market cap has decreased by 20% over the past three months, but is currently supporting the previous 2021 high and March 2024.
Analysts explained that the relatively relative average price or RVWAP was right below the market cap and additional support for market structure was added.
Dome said.
“This is very clear on this monthly chart and adds the idea that the lowest monthly acceptance will break the bull market.”
Similarly, the encryption trader, DAAN CRYPTO, emphasized that the day deadline is important from the point of view. Currently, the total market capitalization is at the highest level in 2021, so it means that there is a weak acceptance of dominance on high time frame charts.
One -week analysis of encryption market daan crypto. Source: X
Related: Bitcoin struggle near $ 90K, fearing Spook ETF investors
This article does not include investment advice or recommendation. All investment and trading measures include risks, and the reader must do his own research when making a decision.