Bitcoin’s bull run is on the verge of receiving a major boost as global liquidity hits a record high of $94 trillion, setting the stage for potential further increases in BTC prices. The analysis by Philip Swift, the creator of LookIntoBitcoin, reveals that the world’s M2 money supply has surged to an unprecedented level, surpassing the previous peak and standing $3 trillion higher than when Bitcoin reached its former all-time high in late 2021.
This surge in global liquidity represents a significant recovery from the lows seen in late 2022, coinciding with the depths of the crypto bear market. Swift emphasizes the crucial role of global liquidity trends in influencing Bitcoin and crypto markets, suggesting that the current conditions are highly favorable for BTC price appreciation. Other liquidity-based analyses also predict bullish outcomes for Bitcoin.
Institutional investors are showing increased interest in Bitcoin and other risk assets as financial conditions improve. On-chain analytics platform CryptoQuant’s latest report highlights similarities between current investor behavior and trends observed in 2020, with large investors adding approximately $1 billion to Bitcoin. This influx of institutional interest is evident in substantial inflows into U.S. spot Bitcoin ETFs.
Glassnode analyst James Check’s on-chain analysis suggests that Bitcoin’s price is poised for significant movement following a period of low volatility. The Sell-Side Risk Ratio for Short-term Holders has declined sharply, indicating a market waiting for new price levels. Michael Novogratz, CEO of Galaxy Digital, predicts that Bitcoin could reach $100,000 by the end of the year, driven by favorable developments in the U.S. political landscape for digital assets.
With bipartisan agreement on the need for crypto legislation and potential SEC approval of ETFs investing directly in Ether, Novogratz believes that Bitcoin is set for significant gains. As Bitcoin approaches its all-time high, experts are optimistic about the potential for further growth in the cryptocurrency market.