Bitcoin Bull Run’s Key Indicator Hits New $94 Trillion All-Time High

Bitcoin’s current bull run looks set to continue, thanks to a record high in global liquidity. On June 5, Philip Swift, the creator of LookIntoBitcoin, shared new analysis showing global liquidity nearing an unprecedented $100 trillion.

Record Global Liquidity

Bitcoin and cryptocurrency markets are very sensitive to global liquidity trends. This year, conditions seem perfect for Bitcoin prices to rise. Swift’s analysis tracks the world’s M2 money supply and its impact on Bitcoin prices. The M2 money supply, in US dollar terms, has reached $94 trillion, a new high. This is $3 trillion more than when Bitcoin reached its all-time high of $69,000 in late 2021.

Since dropping to $85 trillion in late 2022, which was during the crypto bear market, the M2 money supply has rebounded by 10%. Swift highlighted this on social media, saying, “The most important chart for this bull run has just made a new all-time high. Are you ready?”

What This Means for Bitcoin

Swift’s data matches other recent findings based on liquidity, which also suggest Bitcoin price is set to increase. Bitcoin’s performance compared to the U.S. M1 money supply is breaking out from a seven-year consolidation period, the longest in Bitcoin history. This breakout indicates a potential for significant price rises.

Growing Interest from Institutional Investors

As financial conditions ease, institutional investors are showing more interest in cryptocurrencies and other riskier assets. According to the latest “Weekly Report” from CryptoQuant, large investors are currently adding about $1 billion into Bitcoin. This is similar to what happened in 2020 before Bitcoin’s price jumped from $10,000 to $70,000. Back then, Bitcoin stayed around the $10,000 mark for six months with high on-chain activity, which was later revealed to be due to over-the-counter (OTC) deals.

Conclusion

Bitcoin price is likely to benefit from the current record high in global liquidity. With the M2 money supply at $94 trillion and institutional investors showing renewed interest, Bitcoin price could continue to rise. Stay tuned for more updates as Bitcoin moves through this exciting phase.

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