Bitcoin’s New Drivers: From Liquidity to Flows

Traditionally, Bitcoin price movements were predicted based on liquidity trends. Expanding money supply often led to price increases, while tightening liquidity was seen as a precursor to corrections. However, 10x Research challenges this model, claiming that today’s market is driven by actual capital flows rather than liquidity levels. In their recent commentary, the firm highlighted how Bitcoin’s price has remained stagnant despite significant global money supply growth, suggesting that active inflows are crucial for price changes.