Real Vision Analyst Predicts Bitcoin Could Hit Six Figures Amid Central Bank Liquidity Surge

Real Vision analyst Jamie Coutts thinks Bitcoin (BTC) could hit a six-figure price during this cycle. He believes that, compared to past bull cycles in 2017 and 2020, Bitcoin will likely see diminishing returns this time around.

In 2017, Bitcoin surged by 19 times. In 2020, it increased by 6 times. But this cycle? Coutts expects it to rise by only 2 to 3 times.

So, how can Bitcoin reach a 200% increase? Coutts says the US Dollar Index (DXY) needs to drop below 101. This drop would be driven by ongoing central bank injections.

The DXY measures how strong the US dollar is against other major global currencies. When the DXY falls, it means the dollar is weakening. Right now, the DXY sits at 102.65.

Coutts also notes that his global liquidity model, which predicted a 75% rally for Bitcoin in November 2023, is showing bullish signs again. He states, “Central banks are capitulating, liquidity spigots are opening, and Bitcoin is about to go much higher.”

According to Coutts, the Bank of Japan (BoJ) and the People’s Bank of China (PBoC) have contributed 41% of the global liquidity added over the past month. The BoJ added $400 billion, while the PBoC added $97 billion. Overall, the global money base expanded by $1.2 trillion. This expansion has been significantly aided by a sharp decline in the US dollar, suggesting it aligns with the Federal Reserve's strategies.