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HomeCryptoBitcoin bullrun “most important chart” hits new peak near $100 trillion

Bitcoin bullrun “most important chart” hits new peak near $100 trillion

Bitcoin is likely driving the current bull run thanks to record high global liquidity.

New analysis by on-chain data platform LookIntoBitcoin creator Philip Swift announced on June 5, showing worldwide liquidity approaching $100 trillion.

Record global liquidity is reminiscent of Bitcoin’s glory days

The Bitcoin and cryptocurrency markets are notoriously sensitive to global liquidity trends. According to Swift, these conditions in 2024 are too favorable to push BTC up.

The LookIntoBitcoin platform tracks the world’s M2 money supply and compares it to BTC price behavior.

In US dollar terms, M2 is now at $94 trillion – more than ever and $3 trillion higher than when Bitcoin reached its ATH of $69,000 in late 2021.

Since hitting a local bottom of $85 trillion in late 2022 – coinciding with the crypto market bearish, M2 has recovered 10%.

“The most important chart of this bullrun just hit a new ATH,” Swift wrote in the accompanying comments.

Bitcoin and global M2 liquidity | Source: Philip Swift

The data coincides with other recent liquidity-based findings that have drawn equally optimistic conclusions about Bitcoin’s direction.

BTC relative to the US M1 money supply is in the process of exiting a 7-year consolidation period – the longest in Bitcoin history, leading to dramatic bullish effects.

Bitcoin investor trend repeats in 2020

As financial conditions ease, further analysis shows growing demand from institutional investors for cryptocurrencies and risk assets.

In its latest “Weekly Report,” on-chain analytics platform CryptoQuant compared investor behavior in 2020.

“Indeed, large investors are adding about $1 billion to Bitcoin, similar to 2020 before the rally from $10,000 to $70,000. Back in 2020, Bitcoin hovered around $10,000 for 6 months with high on-chain activity, which was later revealed to be an OTC trade. Now, despite low price volatility, on-chain activity remains high, with $1 billion being added daily by new whale wallets, likely institutional investors participating in custodial wallets (custody) buy Bitcoin”.

Bitcoin

Compare Capitalization Bitcoin’s new whale | Source: CryptoQuant

The accompanying chart compares the aggregate cost basis (also known as realized price) of new whales from 2020 to 2024.

CryptoQuant also highlighted the growing inflows into US spot Bitcoin ETFs, which saw the second highest net inflows on June 4.

US Bitcoin ETF spot holdings (screenshot) | Source: CryptoQuant

You can see coin prices here.

Minh Anh

According to Cointelegraph

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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