Pulse Check on Liquidity Trends

MAY 02, 2023 • 7 Min Read

Kevin Kelly, CFA + 1 other Jason Pagoulatos Kevin Kelly, CFA
The authors have not purchased or sold any token for which the authors had material non-public infor

Pulse Check

In early February, we wrote about the turnaround in the global liquidity cycle and its influence on the market’s strong start to the year.

Specifically, we noted the following:

  • “The global liquidity cycle showed signs of bottoming back in Q4, which coincided with the October lows. Recent increases in global liquidity have been a driving factor in this year’s market rally.”
  • At the time, we noted this was “largely driven by China’s PBoC and, to a lesser extent, the Fed” and that this trend “could continue through the better part of Q1 as the US debt ceiling debacle forces the TGA to be drawn down.”
  • Our work suggested the “risk is to the upside in the short-term” and that the “current rally could extend deeper into Q1.”
  • We did, however, note there were “still multiple headwinds that could drag on markets as we move closer to late Q1/Q2.”
  • Despite this, our lo

Unlock the whole story

Delphi Pro Banner

Delphi Pro is our institutional-grade crypto research and analysis offering, providing full market coverage across deep-dive reports, analysis, data and community.

    Starting at $499 a month**

    Create a free account

    * Team features available on multi-seat purchase.

    ** Based on purchase of annual subscription.

    Kevin Kelly, CFA + 1 other Jason Pagoulatos Kevin Kelly, CFA