According to reports, Bitcoin's 2025 rally was supported by a liquidity foundation that experienced changes in the final quarter. Some analysts point to global liquidity indexes reaching record highs, while others, using CrossBorder Capital's tracking, suggest momentum peaked in early November. The debate centers on whether the level of liquidity or its direction is more critical for Bitcoin as it heads into 2026. Data from the Bank for International Settlements (BIS) indicates expansion in cross-border bank credit in foreign currencies. However, CrossBorder Capital's data suggests a different trend in the fourth quarter, noting a recent stall in growth and an estimated drop in global liquidity. The mechanics of "net liquidity," which include the Federal Reserve balance sheet, Treasury General Account, and reverse repo, shed light on domestic developments.

According to reports, Bitcoin's 2025 rally was supported by a liquidity foundation that experienced changes in the final quarter. Some analysts point to global liquidity indexes reaching record highs, while others, using CrossBorder Capital's tracking, suggest momentum peaked in early November. The debate centers on whether the level of liquidity or its direction is more critical for Bitcoin as it heads into 2026. Data from the Bank for International Settlements (BIS) indicates expansion in cross-border bank credit in foreign currencies. However, CrossBorder Capital's data suggests a different trend in the fourth quarter, noting a recent stall in growth and an estimated drop in global liquidity. The mechanics of "net liquidity," which include the Federal Reserve balance sheet, Treasury General Account, and reverse repo, shed light on domestic developments.