Mark Quant, a cryptocurrency market researcher, has published the Global Liquidity Index (GLLI).
He argued that the rise of the Global Investor Relations Index (GLI) signals a crypto market recovery, which could lead to the crypto market capitalization surpassing $4 trillion in the second quarter of 2025.
The Global Liquidity Index measures how easy it is to raise funds in global financial markets and is used to understand the global financial situation.
A rise in the GLI means investors can secure more capital, which will fuel price increases for riskier assets like cryptocurrencies.
The total market capitalization of the cryptocurrency market hit an all-time high of $3.73 trillion on December 14, 2024, but has since fallen 21% to $2.91 trillion.
Quant explained through a chart that the GLI and the total market capitalization of the cryptocurrency market (TOTAL) show a high correlation of 0.77 with a time lag of 74 days.
It acts as a benchmark, and when the index expands, the cryptocurrency market also tends to show bullishness. Quant said, "If liquidity is fully reflected in the price, TOTAL could exceed $4 trillion,
This is consistent with past liquidity-driven market cycles."
2025/03/07 17:35 KST
Copyright(C) BlockchainToday wowkorea.jp 117