Bitcoin is expected to further strengthen its current bull market thanks to record-high global liquidity.
A new analysis published on June 5 by Philip Swift, founder of on-chain data platform LookIntoBitcoin, shows that global liquidity is approaching $100 trillion.
Global Liquidity Record Calls for BTC Price Mimicking Move
Bitcoin (BTC) and cryptocurrency markets are famously sensitive to global liquidity trends, and the situation in 2024 could not be more conducive to rising BTC prices.
This is the conclusion of Swift, whose platform tracks the global M2 currency supply and compares it to BTC price action.
In US dollars, M2 is currently worth $94 trillion. This is more than ever before and $3 trillion more than when Bitcoin hit its all-time high of $69,000 in late 2021.
Since hitting a local low of $85 trillion at the end of 2022, coinciding with the cryptocurrency bear market, M2 has rebounded 10%.
“The most important chart for this bull market just hit a new all-time high,” Swift wrote in part of her commentary on X.
“Are you ready?”
This data is consistent with recent liquidity-based research that has drawn optimistic conclusions about where Bitcoin is headed.
BTC vs. US M1 money supply is in the process of coming out of the 7-year consolidation period, the longest in Bitcoin history, and has serious upside potential as a result.
Bitcoin Investor Trends Copy 2020
As financial conditions ease, further analysis shows a growing appetite for cryptocurrencies and risk assets among institutional investors.
Related: Bitcoin ETFs are gaining attention globally as BTC price surpasses $71,000.
In a recent ‘weekly report’ sent to Cointelegraph, on-chain analytics platform CryptoQuant compared investor behavior in 2020.
“In fact, large investors are adding about $1 billion to Bitcoin, similar to 2020 before it rose from $10,000 to $70,000. “In 2020, Bitcoin hovered around $10,000 for six months with high on-chain activity, which was later revealed to be OTC trading,” it said.
“Despite the now low price volatility, on-chain activity remains high, with $1 billion likely to be added daily by new whale wallets in the form of Bitcoin purchases by institutional investors entering custodial wallets. It’s high.”
The attached chart compares the total cost basis, also known as the realized price, of new whales from 2020 to 2024.
CryptoQuant likewise highlighted increased inflows into US spot Bitcoin exchange-traded funds (ETFs), which recorded the second-highest net inflows on June 4.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.