Bitcoin May Be Entering Its Most Bullish Phase Since 2020 – Here is Why

Bitcoin (BTC) may be entering its most bullish phase since 2020, according to market insights from Swan.

As the cryptocurrency market continues to heat up, a recent analysis by Swan reveals that the current environment could be setting up for the most bullish setup for Bitcoin since the 2020 bull market.

A combination of cooling gold prices, rising global liquidity, and increasing macro uncertainty seems to be paving the way for a major move by the flagship cryptocurrency.

While gold, the traditional safe haven asset, experienced a 3% decline this week, Bitcoin quietly rose by approximately 4%. Swan points out that in the past, such patterns in the same time frame—like BTC’s ascent from $70K to $108K—have followed a similar type of divergence.

Furthermore, global liquidity, measured by the M2 money supply, is increasing for the first time since 2021. As Swan highlights, every major Bitcoin bull market has been accompanied by expanding money supply, leading to softening financial conditions and declining trust in fiat currency—conditions that are now resurfacing.

"The last time we saw this level of VIX volatility was in March 2020, at the onset of the coronavirus pandemic," adds Swan.

However, despite the VIX index stabilizing, the underlying uncertainty persists. Bitcoin typically flourishes in such environments due to its certainty, neutrality, and immunity to systemic risk.

Together, these signals suggest that Bitcoin may be on the verge of another major rally, with Swan analysts hinting at a potentially explosive move in the months ahead.