Bitcoin’s current bull run is on the brink of receiving a major boost as global liquidity hits a record high of $94 trillion, setting the stage for potential further growth in BTC prices. An analysis by Philip Swift, the creator of LookIntoBitcoin, has revealed this significant milestone in global liquidity, measured by the world’s M2 money supply.
Swift’s analysis, published on June 5, highlighted that global liquidity has reached an all-time high of $94 trillion in U.S. dollar terms, surpassing the previous peak and exceeding the amount when Bitcoin hit its former all-time high of $69,000 in late 2021. This surge in liquidity represents a substantial recovery from the local lows of $85 trillion observed in late 2022 during the crypto bear market.
According to Swift, global liquidity trends play a crucial role in influencing Bitcoin and crypto markets. He believes that the current conditions are highly favorable for BTC price appreciation, aligning with predictions from other liquidity-based analyses that forecast positive outcomes for Bitcoin.
CryptoQuant’s latest “Weekly Report” also indicates a growing interest among institutional investors in Bitcoin, with large investors adding approximately $1 billion to Bitcoin holdings. This activity mirrors the trends observed before the significant rally from $10,000 to $70,000 in 2020. Despite low price volatility, there is a notable increase in on-chain activity, with daily inflows into new whale wallets and significant inflows into U.S. spot Bitcoin ETFs, marking the second-highest net inflows on June 4.
Glassnode analyst James Check’s on-chain analysis suggests that Bitcoin’s price is primed for significant movement after a period of low volatility, with the Sell-Side Risk Ratio for Short-term Holders indicating a market ready for new price levels. The decline in this ratio suggests that most traders who intended to take profits or losses at current prices have already done so, signaling a potential price shift.
Galaxy Digital CEO Michael Novogratz recently predicted that Bitcoin could reach $100,000 by the end of the year, with a rapid rise to $73,000 in the coming weeks due to favorable developments in the U.S. political landscape for digital assets. He points to current market dynamics and political shifts as key factors supporting this bullish outlook, especially with bipartisan support for crypto legislation.
As Bitcoin approaches its all-time high, experts believe that the cryptocurrency is poised for significant gains, fueled by growing institutional interest and confidence in its value as an asset class.
