Central banks are gearing up to increase money supply in the first quarter of 2025, as predicted by Jamie Coutts, the chief digital assets analyst at Real Vision. Coutts took to the social media platform X to share his insights, stating that central bank intervention is likely in the upcoming quarter. However, he also highlighted the challenges of predicting monetary policy due to political influences.
In his analysis, Coutts emphasized the current liquidity impasse that the global economy is facing, with debt levels reaching 340% of gross domestic product (GDP). He pointed out that in a credit-based fiat fractional system, monetary expansion is inevitable to sustain the financial system. Coutts compared this inevitability to the concept of “the spice must flow,” indicating that monetary expansion is a fundamental aspect of the financial landscape.
One key factor that Coutts highlighted in relation to Bitcoin’s performance is the US dollar index (DXY), which measures the USD against a basket of major foreign currencies. He noted that the DXY has retreated from 110 and is currently at 107, a previous two-year resistance level. Coutts suggested that a potential breakdown in the DXY could lead to Bitcoin reaching new all-time highs.
At the time of writing, Bitcoin is trading at $102,406, experiencing a slight decline of nearly 1% in the past 24 hours and around 6% from its recent peak of $108,786. Meanwhile, the DXY stands at 107.43, according to data from MarketWatch.
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Image Source: Midjourney
(Note: This article is a rewrite based on the original content from Real Vision and The Daily Hodl, with additional analysis and insights for a WordPress platform.)