Bitcoin bull runs most important chart hits new alltime high as global liquidity approaches 100 trillion
The global liquidity has skyrocketed to almost $100 trillion, sparking optimistic expectations for the Bitcoin (BTC) market. This extraordinary level of liquidity is viewed as a significant boost to Bitcoin’s ongoing bullish trend, with the cryptocurrency currently trading at $71,000. A recent study conducted by Philip Swift, the creator of the on-chain data platform LookIntoBitcoin, indicates that the global M2 money supply has reached $94 trillion – a record high.
This amount is $3 trillion higher than when Bitcoin reached its previous all-time high of $69,000 in late 2021. Since hitting a low of $85 trillion in late 2022, the M2 has rebounded by 10%, showcasing a notable recovery from the crypto bear market’s lowest point. Swift’s platform monitors the global M2 money supply and its correlation with Bitcoin price patterns. He stressed the significance of this milestone on X (formerly Twitter), stating: “The most crucial chart for this bull run has just achieved a new all-time high.”
This surge in global liquidity suggests a strong link between increased liquidity and Bitcoin’s price trajectory, hinting that the rise in M2 money supply could further enhance Bitcoin’s bullish momentum.
Bitcoin’s resilience and future outlook
Bitcoin has displayed remarkable resilience, revisiting the $70,000 price level amid positive macroeconomic signals and increased market optimism. With $1 billion being added daily to new whale wallets, Bitcoin appears to be on the brink of another substantial price movement. Despite minor setbacks since May 2021, Bitcoin’s overall trend remains bullish. Ki Young-Ju, the founder and CEO of CryptoQuant, highlighted similarities to mid-2020, where stable prices coincided with high on-chain activity, indicating a robust market health.
The BTC versus U.S. M1 money supply metric is currently breaking out from a seven-year consolidation period – the lengthiest in Bitcoin’s history, as detailed by Finbold. This breakout is viewed as a crucial development that could trigger a parabolic surge in Bitcoin’s price, resembling past bull markets. Moreover, U.S. Bitcoin spot ETFs experienced their second-highest joint net inflow day of $886.6 million on June 4, reflecting growing institutional interest and confidence in Bitcoin as a valuable asset class.
Furthermore, the Puell Multiple indicator, which evaluates Bitcoin’s value in relation to mining activity, has entered a “discount range,” suggesting that Bitcoin may be undervalued. This often indicates a favorable buying opportunity for investors anticipating future price gains. CryptoQuant researchers believe that the market might be entering a new phase of scarcity, preparing for a potential rally.
BTC price analysis
With Bitcoin presently trading at $71,284, up 0.7% for the day and advancing 14% on its monthly chart, market sentiment remains positive for potential future rallies. The substantial global liquidity, combined with increasing whale activity and institutional investments, sets the stage for a potential surge in Bitcoin’s price. Overall, Bitcoin is receiving positive signals from all fronts, indicating a robust and potentially profitable period ahead for investors.
While the general sentiment leans bullish, it is essential to exercise caution and consider other factors before making investment decisions in Bitcoin’s volatile market.
Disclaimer:
The information on this site should not be taken as investment advice. Investing carries risks, and your capital is at stake when investing.