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M2 Global Liquidity Rises Again: Will Alts Follow

M2 Global Liquidity Rises Again: Will Alts Follow

CoinomediaCoinomedia2025/02/21 18:11
By:Aurelien SageAurelien Sage

M2 global liquidity is rising again after peaking in Dec 2024. Will altcoins start catching up soon? Here's what to expect.Altcoins Lag Behind But May Soon Catch UpWhat to Expect Next?

  • M2 global liquidity peaked in Dec 2024, aligning with a local altcoin top.
  • Liquidity is now rising again, potentially boosting altcoins.
  • Historical trends suggest altcoins may soon catch up.

M2 global liquidity, a key indicator of Market liquidity, plays a crucial role in the performance of risk assets, including cryptocurrencies. In December 2024, M2 liquidity reached a peak, coinciding with a local top in the Altcoin market. Now, with liquidity on the rise again, investors are speculating whether altcoins will follow suit.

Altcoins Lag Behind But May Soon Catch Up

Historically, altcoins tend to move in cycles, often reacting with a slight delay to macroeconomic trends such as liquidity expansion. As more liquidity enters the market, it generally leads to increased investor confidence, higher trading volumes, and stronger price action across risk assets. If history repeats itself, altcoins could be on the verge of a strong upward movement.

M2 Global liquidity is back on the rise again.

It peaked in December 2024, which also marked the local top for #alts .

I guess alts will start catching up really soon 🚀 pic.twitter.com/J3lsh8ZE8E

— Ted (@TedPillows) February 20, 2025

What to Expect Next?

If M2 liquidity continues to rise, we may witness a fresh rally in the altcoin market. Investors should keep an eye on liquidity trends, Bitcoin ’s price movement, and overall market sentiment. While no Prediction is guaranteed, the rising liquidity trend suggests that a bullish phase for altcoins may be on the horizon.

Disclaimer: The content on CoinoMedia is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments carry risks, and readers should conduct their own research before making any decisions. CoinoMedia is not responsible for any losses or actions taken based on the information provided.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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