The cryptocurrency market is experiencing a significant boost, driven by a substantial increase in global liquidity. Philip Swift, founder of LookIntoBitcoin, has highlighted the connection between global liquidity and cryptocurrency prices, particularly Bitcoin. As global liquidity approaches $100 trillion, Swift believes that risk markets, including cryptocurrencies, are poised for further growth.

The M2 money supply in US dollars has risen from $85 trillion in late 2022 to $94 trillion, a 10% increase that coincides with the recent surge in cryptocurrency prices. Swift's analysis suggests that this growth in liquidity is a key factor driving the current bull run. He emphasizes the importance of monitoring liquidity supply and is optimistic about the medium and long-term future of cryptocurrencies.

Swift's findings are supported by CryptoQuant's market report, which notes that major investors are mirroring their 2020 strategy by adding approximately $1 billion to Bitcoin before its price rise from $10,000 to $70,000. Despite low price volatility, on-chain activity remains high, with $1 billion being added daily by new whale wallets, likely in the form of Bitcoin purchases from institutional investors.

In conclusion, the significant increase in global liquidity has created a favorable environment for cryptocurrency market growth. As liquidity continues to expand, investors are becoming increasingly optimistic about the future of cryptocurrencies. With the connection between global liquidity and cryptocurrency prices becoming more apparent, market analysts like Philip Swift are urging investors to keep a close eye on liquidity supply to maximize potential gains.