Bitcoin's price has shown a close correlation with global liquidity growth, with liquidity being responsible for up to 90% of its price fluctuations. Despite economic stressors like recession risks and geopolitical tensions, rising liquidity remains the main driver for asset prices, including Bitcoin, which recently surpassed $100,000. Raoul Pal emphasizes that expanding liquidity, which stems from increasing debt levels, is structural and cyclical, with cycles projected to peak mid-2026. Key players in this global liquidity expansion include the US Federal Reserve and the People's Bank of China. Michael Howell highlights that any downturn might not affect Bitcoin until at least 2026 due to continued liquidity growth for 2025, which is favorable for the digital asset as it relies heavily on rising liquidity. Howell posits that regardless of potential economic downturns, central banks' likely responses will sustain monetary inflation, thereby benefiting assets like Bitcoin.

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