Crypto finance firm Matrixport believes the U.S. economy is entering a fresh wave of liquidity expansion – a shift it says could propel Bitcoin and other digital assets higher for the next two years.
According to the firm’s latest market outlook, a combination of loose credit conditions, policy support, and robust structural funding is creating a favorable backdrop for risk assets. Matrixport’s analysts suggest that if these factors persist, they could sustain upward momentum in crypto markets until at least 2026.
Money Market Funds at Record Highs
One of the clearest indicators of this liquidity surge is the explosive growth of U.S. money market funds. Since late 2018, total assets in these funds have more than doubled, jumping from $3 trillion to $7.4 trillion. Annualized interest income has also surged to $320 billion, boosting the overall pool of available capital.
The report points to a parallel rebound in credit supply, with commercial and industrial loans on the rise, alongside fresh liquidity injections from ongoing fiscal measures. This environment, Matrixport says, is likely to lift investor appetite for higher-risk assets – with cryptocurrencies standing to gain the most.
Altcoins Could Share the Spotlight
While Bitcoin remains the primary beneficiary in this scenario, the firm sees potential spillover into the altcoin market. The combination of stronger lending activity and rising money supply could drive broader capital inflows into digital assets, though Matrixport warns that market volatility will remain a factor to watch.
Overall, the research paints a bullish picture for crypto markets, hinting that the next 24 months may mark one of the strongest extended uptrends since the industry’s inception.
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Source: https://coindoo.com/bitcoin-poised-for-multi-year-rally-as-u-s-liquidity-wave-builds/