LIQUIDITY

Most investors study charts.
Very few study liquidity.

Price can only rise when liquidity allows it.
Price can only fall when liquidity tightens.

Liquidity determines how far price can move…
and how fast it moves.

Supply sets the conditions.

Liquidity provides the fuel.

Liquidity Is Not Opinion

Bitcoin does not move because of headlines.

It moves because capital becomes
available… or unavailable.

Liquidity expands when:

• Central banks add reserves
• Interest rates fall
• Credit becomes easier
• Financial conditions loosen

Liquidity contracts when:

• Interest rates rise
• Credit tightens
• The dollar strengthens
• Financial conditions restrict capital

Bitcoin responds to changes in liquidity,
not predictions about liquidity.

Supply determines whether Bitcoin can move.

Liquidity determines whether Bitcoin does move.

Strong supply with weak liquidity produces slow markets.

Strong liquidity with weak supply produces explosive markets.

When supply and liquidity align,
major price trends begin.

Supply usually moves slowly.

Liquidity can change fast.

That is why Bitcoin price often moves
before investors understand why.

Liquidity is the transmission system
between the financial world and Bitcoin price.

Not:

"Is Bitcoin bullish?"

But:

Is liquidity expanding or contracting?

Bitcoin can only be understood by studying four forces:

Supply – The structural side of Bitcoin
Liquidity – The energy behind price moves
Ownership – Who holds Bitcoin
Market State – The overall environment

Together, they explain Bitcoin beyond the four-year cycle.