- Total crypto market cap breaks decade-long triangle pattern vs US dollar liquidity in new cycle breakout.
- BTC and ETH are positioned to lead capital rotation as macro resistance dissolves, signaling potential parabolic phase.
- Chart shows early breakout stage, similar to 2017 move, as inflation-adjusted liquidity flows into digital assets.
The total crypto market cap has broken out against the US money supply, triggering what could become its strongest expansion phase to date. This setup, viewed on a multi-year chart, may signal renewed capital inflows into Bitcoin, Ethereum, and the broader altcoin market.
Macro Breakout Shows Multi-Year Triangle Formation Completion
The chart shared by @JavonTM1 reveals a technical breakout in the crypto market cap versus US M1 money supply. The years 2020-2026 have created a large upside-breaking ascending triangle after a few years of being compressed.
A similar pattern, seen between 2015 and 2017, was followed by a full-blown bull cycle. The new breakout suggests another expansion may be underway. This action beyond resistance is a sign that a long-term period of consolidation has ended and people today have increased confidence on crypto assets.
Bitcoin and Ethereum Poised for Macro Upside Shift
Bitcoin and Ethereum appear primed to benefit as the breakout unfolds. Bitcoin trades at $118,488 with a near-flat performance over the past week. Ethereum holds at $3,841.14, gaining nearly 5% in the last seven days.
The market structure shows higher lows, even during bearish phases, reinforcing long-term buying interest. If the current trend holds, both BTC and ETH could outperform previous cycles as liquidity flows back into digital assets.
Decoupling from Fiat Liquidity Marks a New Phase
The crypto market’s valuation relative to fiat supply reflects growing independence from macro pressures. The long-term triangle breakout shows crypto’s resilience to inflationary trends.
This move suggests a maturing market structure, where digital assets are not only absorbing liquidity but starting to outperform fiat-based instruments. With the pattern in early stages, further upward movement could define the next global rotation into crypto.
