Delphi Digital forecasts that Bitcoin may outperform most cryptocurrencies over the next year as liquidity tightens. The firm suggests that in times of preference for high-quality liquid assets, capital typically shifts from altcoins to Bitcoin, and subsequently to cash and U.S. Treasuries. Delphi's Liquidity Margin of Safety (LMOS) index has risen to levels near those seen before the global financial crisis, while central bank policy breadth and U.S. policy leading indicators have declined, historically indicating a rise in real yields over the next 12 to 18 months. The LMOS index, which typically leads Bitcoin's market share by about 12 months, suggests that BTC dominance may continue to rise, potentially facing liquidity pressures similar to those in 2022.
Delphi Digital Predicts Bitcoin Outperformance Amid Tightening Liquidity
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