Bitcoin’s ongoing bull run is poised to receive a significant boost thanks to a surge in global liquidity levels. A recent analysis released on June 5 by Philip Swift, the mastermind behind the on-chain data platform LookIntoBitcoin, indicates that liquidity worldwide is approaching $100 trillion.
The record-breaking global liquidity levels are expected to have a positive impact on the price of Bitcoin (BTC) and the overall cryptocurrency markets. The year 2024 seems to offer ideal conditions for the price of BTC to soar, according to Swift’s evaluation. His platform keeps tabs on the world’s M2 money supply and compares it to the behavior of BTC prices.
The M2 money supply in the United States has now reached $94 trillion, surpassing all previous records and marking a $3 trillion increase since Bitcoin reached its previous all-time high of $69,000 in late 2021. Following a dip to $85 trillion in late 2022, coinciding with the lowest point of the crypto bear market, the M2 money supply has bounced back by 10%.
Swift expressed his excitement by stating, “The most crucial chart for this bull run has just hit a new all-time high.” The data aligns with recent findings based on liquidity, all of which are painting a bullish picture of Bitcoin’s future trajectory.
In addition, comparisons between Bitcoin and the U.S. M1 money supply indicate that the market is on the verge of breaking out from a consolidation period lasting seven years, the longest in Bitcoin’s history. This breakout is expected to have significant positive implications for BTC prices.
Further analysis suggests that institutional investors are showing an increased interest in cryptocurrencies and other risk assets as financial conditions become more favorable. A recent “Weekly Report” from the on-chain analytics platform CryptoQuant draws parallels between current investor behavior and that of 2020, indicating a potential rally in Bitcoin prices.
Large investors are reportedly injecting around $1 billion into Bitcoin, similar to the behavior observed in 2020 before the price surged from $10,000 to $70,000. The report also highlights a rise in inflows to U.S. spot Bitcoin exchange-traded funds (ETFs), which saw their second-highest net inflows on June 4.
It is important to note that this article does not offer investment advice or recommendations. All investment and trading decisions involve risks, and readers are advised to conduct their own research before making any decisions.