Global liquidity conditions are quietly improving, and several market watchers believe this shift could have meaningful implications for Bitcoin and the broader crypto market.

After an extended period of monetary tightening, aggregate liquidity measures are now moving higher, a development that has historically coincided with renewed risk appetite.

Key takeaways

• Global liquidity is trending higher, a condition that has historically supported Bitcoin

• On-chain data shows renewed accumulation from large, long-term holders

• Analysts argue Bitcoin should be valued against money supply growth, not just the dollar

• Macro and on-chain indicators are starting to align in favor of longer-term momentum 

Analysts tracking money supply trends note that Bitcoin has often performed best during phases when liquidity expansion becomes consistent rather than sporadic. While price reactions are rarely immediate, sustained increases in global liquidity have previously acted as a foundation for longer-term upside across digital assets.

This trend is drawing attention as markets search for confirmation that capital conditions are easing rather than tightening further.

Why Liquidity Matters for Bitcoin

Bitcoin’s performance has frequently shown sensitivity to changes in global liquidity. When excess capital flows back into financial markets, assets with limited supply tend to benefit disproportionately. In past cycles, liquidity expansion has acted as a catalyst rather than a guarantee, supporting prices once investor confidence begins to return.

GLOBAL LIQUIDITY TRENDING HIGHER, BULLISH FOR BITCOIN & CRYPTO! pic.twitter.com/Lp6i9kdKkY

— Crypto Rover (@cryptorover) December 12, 2025

Current liquidity levels are approaching zones last seen ahead of previous risk-on phases. While this does not eliminate near-term volatility, it suggests the macro environment may be shifting from a headwind to a potential tailwind.

Whale Accumulation Signals Renewed Confidence

On-chain data is reinforcing the macro narrative. Recent analysis highlighted by Crypto Rover shows a sharp rise in demand from Bitcoin accumulation addresses, typically associated with large, long-term holders.

BITCOIN WHALE DEMAND IS RETURNING NOW! pic.twitter.com/NJicpYgJ6k

— Crypto Rover (@cryptorover) December 12, 2025

This type of activity is closely watched because whales tend to accumulate during consolidation periods rather than chase short-term price moves. The latest increase suggests these investors are positioning ahead of potential future upside rather than reacting to daily market swings.

Historically, similar accumulation patterns have appeared before broader market expansions, making this trend particularly notable.

Valuation Beyond the U.S. Dollar

Adding a broader macro perspective, analyst Michaël van de Poppe argues that Bitcoin and other major assets are often misjudged when valued only against the U.S. dollar. He suggests that comparisons against metrics like global money supply, gold, or economic output provide a more accurate picture.

Quite often, you'll hear people say:

– Gold is too expensive.
– #BItcoin is too expensive.
– Nasdaq is too expensive.

The prime reason for people claiming that is that they value the asset against the Dollar.

That's not the right metric.

I think valuing the asset against M2… pic.twitter.com/jeAR4FjpFK

— Michaël van de Poppe (@CryptoMichNL) December 12, 2025

From this viewpoint, assets labeled as “too expensive” may simply be reflecting long-term monetary expansion rather than speculative excess. Van de Poppe notes that gold, when measured against money supply growth, remains below historic extremes despite recent highs, a comparison he believes applies to Bitcoin as well.

The Bigger Picture for Bitcoin

Taken together, rising global liquidity, renewed whale accumulation, and alternative valuation frameworks are beginning to align. While short-term price action remains sensitive to macro headlines and market sentiment, the underlying structure appears to be strengthening rather than deteriorating.

For longer-term participants, these conditions suggest Bitcoin’s role as a monetary hedge may be reasserting itself. Rather than signaling a late-stage cycle, current trends point toward an environment where patience could once again be rewarded as liquidity works its way through the system.