Bitcoin bull runs most important chart reaches new alltime high as global liquidity approaches 100 trillion
Global liquidity has reached nearly $100 trillion, sparking optimism in the Bitcoin (BTC) market. This influx of liquidity is viewed as a significant factor in driving Bitcoin’s current bullish trend, as the cryptocurrency now sits at $71,000.
A recent analysis conducted by Philip Swift, the mastermind behind the on-chain data platform LookIntoBitcoin, indicates that the global M2 money supply has hit a record high of $94 trillion. This figure surpasses the previous peak by $3 trillion, set when Bitcoin reached its all-time high of $69,000 in late 2021.
After hitting a low of $85 trillion in late 2022, the M2 money supply has rebounded by 10%, signaling a strong recovery from the depths of the crypto bear market. Swift’s platform closely monitors the global M2 money supply and its impact on Bitcoin price trends. He emphasized the significance of this milestone on X (formerly Twitter), stating, “The most crucial chart for this bull run has just hit a new all-time high.”
The surge in global liquidity implies a strong correlation between increased liquidity and Bitcoin’s price trajectory, suggesting that the rise in M2 money supply could further propel Bitcoin’s bullish momentum.
Bitcoin has showcased remarkable resilience, reaching the $70,000 price level amidst positive macroeconomic indicators and a buoyant market sentiment. With $1 billion being added daily to new whale wallets, Bitcoin might be on the cusp of another substantial price movement.
Despite minor setbacks following May 2021, Bitcoin’s overall trajectory remains bullish. Ki Young-Ju, founder and CEO of CryptoQuant, highlighted parallels to mid-2020, where stable prices coincided with high on-chain activity, indicating a robust market environment.
The BTC versus U.S. M1 money supply metric is on the brink of breaking out from a seven-year consolidation phase – the lengthiest in Bitcoin’s history, according to reports from Finbold. This breakout is viewed as a pivotal development that could trigger a parabolic surge in Bitcoin’s price, akin to previous bull markets.
Furthermore, U.S. Bitcoin spot ETFs experienced their second-highest joint net inflow day of $886.6 million on June 4, underscoring growing institutional interest and confidence in Bitcoin as a valuable asset class. The Puell Multiple indicator, which gauges Bitcoin’s value relative to mining activity, has entered a “discount range,” hinting that Bitcoin may be undervalued.
This often signals an opportune time for investors anticipating future price gains. Researchers at CryptoQuant believe the market may be entering a new phase of scarcity, setting the stage for a potential rally.
With Bitcoin currently trading at $71,284, up 0.7% for the day and advancing 14% on its monthly chart, market sentiment remains positive for potential upcoming rallies. The significant global liquidity, coupled with rising whale activity and institutional investments, lays the groundwork for a potential surge in Bitcoin’s price.
In conclusion, Bitcoin is receiving favorable signals from various angles, pointing towards a robust and potentially profitable period ahead for investors. While the general sentiment leans bullish, it is crucial to exercise caution and consider all factors before making investment decisions in Bitcoin’s volatile market.
Disclaimer: The information provided should not be considered as investment advice. Investing in cryptocurrencies is speculative and involves risks to your capital.
