{"id":1205,"date":"2026-03-04T12:11:24","date_gmt":"2026-03-04T12:11:24","guid":{"rendered":"https:\/\/blog.coinsignals.net\/?p=1205"},"modified":"2026-03-04T12:11:24","modified_gmt":"2026-03-04T12:11:24","slug":"why-has-bitcoin-fallen-50-percent-despite-rising-global-liquidity","status":"publish","type":"post","link":"https:\/\/blog.coinsignals.net\/index.php\/2026\/03\/04\/why-has-bitcoin-fallen-50-percent-despite-rising-global-liquidity\/","title":{"rendered":"Why Has Bitcoin Fallen 50 Percent Despite Rising Global Liquidity"},"content":{"rendered":"\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"576\" height=\"324\" data-id=\"1206\" src=\"https:\/\/blog.coinsignals.net\/wp-content\/uploads\/2026\/03\/IMG_1059.jpeg\" alt=\"\" class=\"wp-image-1206\" srcset=\"https:\/\/blog.coinsignals.net\/wp-content\/uploads\/2026\/03\/IMG_1059.jpeg 576w, https:\/\/blog.coinsignals.net\/wp-content\/uploads\/2026\/03\/IMG_1059-300x169.jpeg 300w, https:\/\/blog.coinsignals.net\/wp-content\/uploads\/2026\/03\/IMG_1059-520x292.jpeg 520w\" sizes=\"auto, (max-width: 576px) 100vw, 576px\" \/><\/figure>\n<\/figure>\n\n\n\n<p>Bitcoin has dropped 50 percent from its all time high within four months, even as global liquidity has expanded. The move challenges the widely held belief that Bitcoin\u2019s price closely tracks overall liquidity conditions.<\/p>\n\n\n\n<p>Chris Tipper, chief economist and strategist at the Ainslie Group, described the disconnect as striking and in need of explanation. According to data from Ainslie Wealth, global liquidity has risen by roughly 5 trillion dollars since Bitcoin peaked in October and now stands near 190 trillion dollars.<\/p>\n\n\n\n<p>Tipper noted that much of this increase has come from the People\u2019s Bank of China, which injected about 1 trillion dollars in 2025 and is expected to add a similar amount this year.<\/p>\n\n\n\n<p><strong>Chinese Liquidity Flows Into Gold Instead of Bitcoin<\/strong><\/p>\n\n\n\n<p>Because Bitcoin remains banned in China, that liquidity does not flow into the cryptocurrency. Instead, it is directed toward gold reserves, domestic infrastructure projects, and the broader real economy.<\/p>\n\n\n\n<p>Tipper argued that when the Chinese contribution is excluded and only Western liquidity is considered, the picture changes significantly. Western liquidity momentum peaked in October and has slowed since then, which aligns more closely with Bitcoin\u2019s price correction.<\/p>\n\n\n\n<p>Gold markets reacted differently. The precious metal reached record highs in late January and is currently trading about 5 percent below that peak. In Tipper\u2019s view, the divergence between gold and Bitcoin can be explained by this split in liquidity flows.<\/p>\n\n\n\n<p>He suggested that if Western liquidity begins to accelerate again, whether due to action from the Federal Reserve in response to market stress, a weakening dollar, or another disruptive event that prompts intervention, Bitcoin could have substantial room to rebound.<\/p>\n\n\n\n<p>Bill Barhydt, chief executive of Abra and chairman of Algorand, pointed to the US Dollar Index as a rough indicator of Western liquidity conditions. The index has rebounded in recent days following escalating military strikes in Iran. After falling to 97.5 in late February, it climbed to 99.6 on Tuesday, according to TradingView. A stronger dollar typically puts pressure on Bitcoin and other risk assets.<\/p>\n\n\n\n<p><strong>Bitcoin Price Outlook<\/strong><\/p>\n\n\n\n<p>Bitcoin slipped below 67,000 dollars during late trading on Tuesday before recovering to around 68,500 dollars by Wednesday morning in Asia.<\/p>\n\n\n\n<p>The asset continues to face strong resistance near the 70,000 dollar level. A sustained move higher may depend on an improvement in Western liquidity conditions, potentially through interest rate cuts or renewed monetary expansion from the Federal Reserve.#cryptonews  <a href=\"https:\/\/t.me\/coinsignalpublic\">https:\/\/t.me\/coinsignalpublic<\/a> <a href=\"https:\/\/coinsignals.net\">https:\/\/coinsignals.net<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin has dropped 50 percent from its all time high within four months, even as global liquidity has expanded. The move challenges the widely held belief&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1205","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/1205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/comments?post=1205"}],"version-history":[{"count":1,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/1205\/revisions"}],"predecessor-version":[{"id":1207,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/1205\/revisions\/1207"}],"wp:attachment":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/media?parent=1205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/categories?post=1205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/tags?post=1205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}