{"id":885858,"date":"2026-01-17T17:33:00","date_gmt":"2026-01-17T23:33:00","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/17\/on-the-bullish-side-of-liquidity-cycle-what-does-that-mean-for-bitcoin\/"},"modified":"2026-01-17T17:33:00","modified_gmt":"2026-01-17T23:33:00","slug":"on-the-bullish-side-of-liquidity-cycle-what-does-that-mean-for-bitcoin","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/17\/on-the-bullish-side-of-liquidity-cycle-what-does-that-mean-for-bitcoin\/","title":{"rendered":"\u2018On the bullish side of liquidity cycle\u2019 \u2013 What does that mean for Bitcoin?"},"content":{"rendered":"

Bitcoins <\/p>\n

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Journalist<\/p>\n<\/p><\/div>\n

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The \u201ccrypto winter\u201d story is fading as global dollar liquidity starts to rise again.<\/p>\n

While mainstream headlines remain fixated on year-end volatility, BitMEX co-founder Arthur Hayes has identified a critical structural shift that could define the first quarter of 2026. <\/span><\/p>\n

According to Hayes, the relentless contraction of global dollar liquidity, a primary headwind for risk assets throughout 2025, officially bottomed out in November.<\/span><\/p>\n

This isn\u2019t just a technical observation. In fact, it\u2019s a fundamental green light for the \u201cmoney printer\u201d narrative.<\/span><\/p>\n

Bitcoins Liquidity \u2013 What\u2019s the status now?<\/h2>\n

According to Hayes<\/a>, liquidity is no longer receding but is now inching higher, creating a fertile environment for a renewed push in crypto markets. <\/span><\/p>\n

This sentiment has been gaining traction among on-chain analysts and macro commentators alike. <\/span><\/p>\n

Specifically, Mister Crypto pointed<\/a> to a looming catalyst, and that is a projected $8.165 billion injection from the Federal Reserve scheduled for 06 January.<\/span><\/p>\n

He said,\u00a0<\/span><\/p>\n

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\u201cWe are now on the bullish side of the liquidity cycle\u2026 Quantitative Easing. Are you bullish on 2026?\u201d<\/span><\/p>\n<\/blockquote>\n

That\u2019s not all though. After a bruising week that saw $1.12 billion in cumulative net outflows, U.S Spot Bitcoin [BTC]<\/a> ETFs finally snapped<\/a> their losing streak on Tuesday.<\/span><\/p>\n

Bitcoins Is there a plot twist?<\/h2>\n

Since that happened, the rebound has been substantial, with the sector absorbing $355 million in a single session and erasing nearly a third of the previous week\u2019s exits.<\/p>\n

BlackRock\u2019s iShares Bitcoin Trust (IBIT) led the inflows, securing $143.75 million in fresh capital. Ark 21Shares (ARKB) followed with $109.56 million, Fidelity (FBTC) added $78.59 million, and Bitwise (BITB) brought in $13.87 million.<\/p>\n

VanEck (HODL) recorded $4.98 million, and Grayscale (GBTC) added $4.28 million, according to Farside Investors.<\/p>\n

This turnaround sharply contrasted with the heavy selling seen just days previously.<\/p>\n

On 26 December, the funds lost $275.9 million \u2013 A moment many analysts viewed as the capitulation point of year-end de-risking.<\/p>\n

Bitcoins December\u2019s \u201cPerfect Storm\u201d v. New Year Setup<\/h2>\n

The broader context of December has been one of retreat. <\/span><\/p>\n

Overall, Spot Bitcoin ETFs shed $744 million last month as investors grappled with falling prices and the typical \u201cliquidity vacuum\u201d that occurs between Christmas and New Year.<\/span><\/p>\n

Spot Ether (ETH) ETFs found their footing<\/a> on 30 December, ending a painful four-day outflow streak with $67.8 million in net inflows. <\/span><\/p>\n

This pivot followed a stretch where Ethereum [ETH]<\/a> funds lost over $196 million, including a particularly dark session on 23 December that saw $95.5 million exit the door.<\/span><\/p>\n

Bitcoins What\u2019s ahead?<\/h2>\n

Despite the institutional pivot, the immediate price action remains in a wait-and-see mode. So was the case with Bitcoin and Ethereum.\u00a0<\/span><\/p>\n

However, in a break from historical norms, Bitcoin is yet to fully react to the expanding money supply in major economies like the U.S, China, and Japan. <\/span><\/p>\n

Even as global liquidity reaches record highs, BTC remains<\/a> nearly 30% below its all-time high \u2013 A sign that while the fuel is being added to the system, it has not yet sparked a speculative fire. <\/span><\/p>\n

Traders currently appear cautious, unwilling to take aggressive positions until the year-end dust settles.<\/span><\/p>\n

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Bitcoins Final Thoughts<\/h2>\n