Recent data suggests that global central bank liquidity is moving in a pattern 2020 — the period that preceded one of the strongest market rallies in history.
The chart highlights a rounded bottom formation and a potential breakout from a downtrend, signaling a possible return of liquidity into the financial system.
Why it matters
Liquidity is the primary driver of markets — not narratives.
When central banks inject liquidity or ease monetary conditions:
- Risk appetite increases
- Capital flows into equities and crypto
- Strong rallies tend to follow
Current signals
- Strong resemblance to the 2020 bottom
- Early signs of trend reversal
- Gradual momentum improvement
However
This is not confirmed yet. Markets still require a decisive breakout and sustained liquidity inflows to validate a new bullish phase.
Conclusion
If this pattern continues, markets could be entering the early stage of a new cycle — but confirmation depends on continued liquidity expansion.