Bitcoin is positioned to extend its ongoing bull run thanks to a surge in global liquidity hitting an all-time high. New analysis released on June 5 by Philip Swift, the creator of the on-chain data platform LookIntoBitcoin, indicates that global liquidity is nearing $100 trillion.
The record-breaking global liquidity levels signal a potential price surge for Bitcoin (BTC) and the crypto markets, which are known to be influenced by global liquidity trends. Swift’s research suggests that the conditions in 2024 are extremely favorable for BTC price growth.
Swift’s platform monitors the world’s M2 money supply and compares it to Bitcoin’s price behavior. In terms of the United States dollar, the M2 money supply has reached $94 trillion, surpassing previous highs and marking a $3 trillion increase since Bitcoin reached its previous all-time high of $69,000 in late 2021.
Following a low point of $85 trillion in late 2022, which coincided with the bottom of the crypto bear market, the M2 money supply has rebounded by 10%. Swift emphasized the significance of this data point, stating that “The most important chart for this bull run has just made a new all-time high.”
The data aligns with other recent findings based on liquidity, all of which point towards a bullish trajectory for Bitcoin. The comparison between BTC and the U.S. M1 money supply indicates a breakout from a seven-year consolidation period, signaling significant potential for price appreciation.
As financial conditions improve, there is a growing interest among institutional investors in crypto and risk assets. Recent reports from the on-chain analytics platform CryptoQuant suggest that institutional investors are increasing their exposure to Bitcoin, reminiscent of behavior seen in 2020 before the significant rally from $10,000 to $70,000.
An analysis of new whale entities’ realized price from 2020 to 2024 highlights the growing confidence among large investors. Additionally, there has been a notable increase in inflows to U.S. spot Bitcoin exchange-traded funds, with the second-highest net inflows recorded on June 4.
It is important to note that this article does not provide investment advice or recommendations. All investment decisions carry risks, and readers are encouraged to conduct their own research before making any decisions.