Part 4/12:
A crucial insight comes from macro analyst Lynn Alden, who emphasizes that Bitcoin and crypto markets are prone to decoupling from liquidity trends during extreme market conditions—namely, bottoms in bear markets and tops in bull markets. During these periods, internal market dynamics, idiosyncratic events, and investor sentiment can overshadow macroeconomic indicators.
For instance, in previous cycle tops, Bitcoin has continued its ascent even as liquidity plateaued or declined, indicating a bullish decoupling. Conversely, at cycle bottoms, liquidity might increase while prices remain depressed for extended periods. This phenomenon underscores the danger of relying solely on global liquidity charts for timing market turns.