June 9, 2024
Bitcoin Price is $71,212 as Global Liquidity Nears $100 Trillion
Bitcoin price today

Bitcoin Price is $71,212 as Global Liquidity Nears $100 Trillion

Thursday, June 6, 2024: Bitcoin Price Today is $71,212. Global liquidity is nearing the $100 trillion mark, boosting Bitcoin’s ongoing bull run. On June 5, Philip Swift, the creator of the on-chain data platform LookIntoBitcoin, published an analysis highlighting this significant milestone.

Source: TradingView

Record High M2 Money Supply

Bitcoin and cryptocurrency markets are notably responsive to global liquidity trends. In 2024, the conditions appear highly favorable for a significant BTC price increase. Swift’s analysis, which monitors the world’s M2 money supply and its relation to Bitcoin price behavior, supports this optimistic outlook.

Bitcoin vs. global M2 liquidity. Source: Philip Swift

The current M2 money supply stands at $94 trillion in United States dollar terms—surpassing previous records and $3 trillion higher than when Bitcoin reached its previous all-time high of $69,000 in late 2021. Since dipping to local lows of $85 trillion in late 2022, coinciding with the trough of the crypto bear market, M2 has rebounded by a full 10%.

“The most important chart for this bull run has just made a new all-time high,” Swift noted in his commentary on X.

“Are you ready?”

Historical Patterns and Bullish Indicators

This data aligns with other recent liquidity-based findings, all of which point to a bullish outlook for Bitcoin. BTC’s behavior relative to the U.S. M1 money supply is on the verge of breaking out from a seven-year consolidation period—the longest in Bitcoin’s history—suggesting significant upside potential.

As financial conditions continue to ease, further analysis indicates an increasing appetite among institutional investors for crypto and other risk assets. CryptoQuant, in its latest “Weekly Report,” drew parallels with investor behavior seen in 2020. According to the report, large investors are currently adding approximately $1 billion to Bitcoin, a trend reminiscent of 2020 before Bitcoin’s rally from $10,000 to $70,000. During that period, Bitcoin hovered around $10,000 for six months with high on-chain activity, which was later revealed as over-the-counter (OTC) deals.

“Now, despite low price volatility, on-chain activity remains high, with $1B added daily by new whale wallets, likely in the form of Bitcoin purchases from institutional investors entering into custody wallets.”

Institutional Investment and ETFs

CryptoQuant also highlighted a significant rise in inflows to U.S. spot Bitcoin exchange-traded funds (ETFs), which experienced their second-highest net inflows on June 4. An accompanying chart compared the aggregate cost basis, or realized price, of new Bitcoin whales from 2020 to 2024, emphasizing the potential for another substantial price surge.

U.S. spot Bitcoin ETF holdings (screenshot). Source: CryptoQuant

As global liquidity reaches unprecedented levels and institutional interest in Bitcoin continues to grow, the conditions appear ideal for Bitcoin to continue its upward trajectory, possibly surpassing previous all-time highs.

Image by Miloslav Hamřík from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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