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Bitcoin has historically responded to positive economic changes, such as Donald Trump’s electoral victory. Now, BRICS’s growing liquidity could also drive Bitcoin.
The encryption market has remained relatively stable in recent days, with a total market capitalization at $ 3.8 billion at the time of publication.
Bitcoin [BTC] It has also maintained a positive perspective, with a market capitalization of $ 2.21 billion. Changing the dynamics of the global market and the increase in liquidity could provide more support for the asset.
Ambcrypto analysis examines how Bitcoin can benefit from these developments.
The increase in liquidity in the BRIC could support Bitcoin
The liquidity expansion is growing between BRICs nations (including Brazil, Russia, India, China, South Africa and others) according to a recent alfracatal report.
The report, which tracks the liquidity of the monetary and bank base, shows the growing levels of liquidity and points to the development of a “new economic axis.”
Growth in international and national trade has played a key role in this expansion and indicates a gradual movement of the US dollar, the world’s dominant reserve currency.
Source: Alfractal
A comparison of the BRICS monetary base with the price of Bitcoin shows positive correlation. The increase in liquidity has been constantly aligned with Bitcoin ascending movements.
With a broader liquidity growth in global markets, Bitcoin is likely to continue moving together.
Brazil, China could feed demand
The developments in Brazil and China have further supported the adoption of digital assets during the past month.
In Brazil, the Government is considering a Bitcoin reserve, known as the Resbit, with plans to assign 5% of its budget, approximately $ 19 billion, to the asset.
Meanwhile, China, despite its prohibition of cryptocurrencies of 2021, has begun to explore a stablcoin backed by Yuan to position its currency for global adoption.
Brazil’s response approval could mark a significant moment for Bitcoin, attracting more liquidity to the market and encouraging the broader adoption within BRICs. A similar movement of China could have the same weight.
Source: TrainingView
Global economic events have historically influenced the price of Bitcoin. After Donald Trump’s victory in the US elections of November 2024, Bitcoin recovered sharply, reaching a new historical maximum.
According to TrainingView, Bitcoin won more than 66% of November 5 to December 2024, rising to $ 108,000.
Global market supervision
On a global scale, the asset has constantly exceeded traditional markets. Artemis data show Bitcoin’s profits so far this year by 103%, compared to 32% for S&P 500.
Source: Bitcoin vs. S&P500
This growth has also been reflected in commercial activity. Global exchanges such as Binance reported negotiation volumes of $ 700 billion, exceeding the estimated value of global real estate.
These figures confirm the accelerated tendency to adopt Bitcoin worldwide.
A remarkable metric to monitor is the Bitcoin reserve that remains in exchanges. Although in a bearish trend, this suggests that more investors are moving active to private wallets, generally associated with long -term tenure strategies.
At present, reservations are found in 2.4 million according to Cryptoquant. A continuous decrease would indicate a deeper adoption and reduced pressure on the side of the sale in the market.
