Bitcoin Bull Run Poised for Boost as Global Liquidity Hits Record $94 Trillion

Bitcoin’s ongoing bull run is set to gain momentum as global liquidity reaches a new peak, according to recent analysis by Philip Swift, the creator of the on-chain data platform LookIntoBitcoin. Global liquidity, measured by the M2 money supply, has soared to an unprecedented $94 trillion, suggesting a potential upswing in BTC prices.

Record High in Global Liquidity:

• June 5 Analysis: Philip Swift’s analysis reveals that global liquidity has hit an all-time high, with M2 money supply now at $94 trillion. This marks a significant recovery from the $85 trillion low in late 2022, a period that coincided with the crypto bear market.
• Impact on Bitcoin: Swift emphasizes the critical role of global liquidity in influencing Bitcoin and crypto markets, noting that the current conditions are highly favorable for BTC price appreciation. He predicts bullish outcomes based on liquidity trends.

Institutional Interest and On-Chain Activity:

• Increased Institutional Investment: There is growing evidence of institutional investors’ renewed interest in Bitcoin, with large investors adding approximately $1 billion to Bitcoin, paralleling the activity before the 2020 rally from $10,000 to $70,000.
• ETF Inflows: Significant inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) have been observed, indicating increased institutional confidence in Bitcoin as a valuable asset class.

On-Chain Indicators and Market Dynamics:

• CryptoQuant Weekly Report: The report highlights high on-chain activity despite low price volatility, with substantial daily inflows into new whale wallets and significant ETF inflows.
• Glassnode Analysis: According to Glassnode analyst James Check, Bitcoin’s Sell-Side Risk Ratio for Short-term Holders has sharply declined, indicating a market poised for significant price movement. This suggests a price shift is imminent to reinvigorate trading activity.

Market Outlook and Predictions:

• Michael Novogratz’s Forecast: Michael Novogratz, CEO of Galaxy Digital, predicts Bitcoin could reach $100,000 by the end of the year, driven by favorable U.S. political developments and potential SEC approval of ETFs investing directly in Ether. He believes Bitcoin’s recent rise to $71,005, nearing its all-time high, sets the stage for significant gains.

Conclusion: The surge in global liquidity to $94 trillion, coupled with increased institutional interest and positive on-chain indicators, suggests that Bitcoin is well-positioned for a robust bull run. Analysts and market experts are optimistic about Bitcoin’s potential to achieve new highs in the coming months, supported by favorable financial conditions and regulatory developments.