We still believe we’re in the midst of a liquidity cycle uptrend, but there are a couple potential headwinds to be mindful of that could cause us to hit a rough patch as we get into Q2.

One of the most notable is a local top in global liquidity growth. We were already seeing signs in mid-January that the expansion in central bank liquidity – a trend that really defined the last 6-8 months – was starting to stall out.

Luckily, this coincided with the launch of the spot Bitcoin ETFs, which sparked another wave of excitement and demand for BTC, helping combat the drag we may have otherwise expected from waning liquidity support.

The question now is whether this trend of fund inflows will continue — and whether demand will remain strong enough to outweigh any near term disruptions in this current liquidity cycle uptrend.

We’re aiming to put out a more detailed note on this topic next week. In the meantime, I discussed a few of these risks in the latest episode of Crypto Insider Talks (where Raoul and I also go back on forth on his latest views and outlook).