Understanding Bitcoin Liquidity Supercycle and Wall Street 3.0
By: Eliza Bennet
As the financial world undergoes a rapid evolution, significant changes in both the traditional and cryptocurrency markets are converging to shape a new era referred to as Wall Street 3.0. This transformation aims to dismantle traditional financial systems and gatekeepers, leveraging blockchain technology to create a more inclusive financial landscape. The incorporation of tokenized equity and the potential for real-time trading are paving the way for a democratized and efficient financial system. This transformation is similar to the impact the internet had on democratizing access to information, decentralizing ownership, and redistributing financial power.
Simultaneously, the crypto market is experiencing what is known as a Bitcoin liquidity supercycle. Digital asset hedge fund Capriole Investments describes this as the beginning of an expansive liquidity-driven phase expected to significantly influence the financial scene for years to come. Recently, Bitcoin achieved a new high, escalating by 16% in a month—a trend attributed not merely to technical factors but to macroeconomic shifts, such as the global expansion of the M3 money supply and the narrowing of corporate bond spreads, signaling increased risk appetite.
The dynamics between Bitcoin and traditional markets, particularly gold, further illustrate potential future trends. Fluctuations in gold prices often precede similar movements in Bitcoin, as showcased by the 28% rise in Bitcoin corresponding with a gold surge earlier in 2025. Furthermore, Bitcoin Treasury Companies (TCs) are emerging as influential players by using fiat capital for Bitcoin investments, amplifying market influence and contributing to significant financial loops that could have trillion-dollar ramifications.
This developing landscape highlights that the ongoing Bitcoin supercycle is merely the beginning, supported by extensive central bank liquidity and evolving corporate and governmental financial strategies.
