Liquidity and Sentiment Are Shifting in Bitcoin’s Favor.

On the liquidity front, global M2 money supply began rising again in Q1 2025 after nearly two years of stagnation. This turnaround follows dovish pivots from central banks in Europe, China, and eventually the U.S. Inflation has cooled, recession risks have increased, and policymakers are starting to ease again. As a result, global liquidity is now trending positive—a key condition for the start of a Bitcoin bull phase.

On the sentiment front, the copper/gold ratio has reached levels that previously marked business cycle bottoms—in 2016, 2020, and now again in 2025. Investor positioning remains defensive, and economic pessimism is widespread. Historically, environments like these have preceded sharp reversals in macro sentiment—and in Bitcoin price action.

When liquidity returns and macro fear peaks, Bitcoin typically front-runs the policy shift. That’s exactly what appears to be starting again, just as we saw in 2016 and 2020.