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Bitcoin Bull Run Boosted by Record Global Liquidity Nearing $100 Trillion

Bitcoin is poised to extend its current bull run, fueled by a record high in global liquidity.

On June 5, Philip Swift, the creator of the on-chain data platform LookIntoBitcoin, published an analysis revealing that worldwide liquidity is approaching $100 trillion.

This surge in liquidity is significant for Bitcoin and crypto markets, which are highly sensitive to global liquidity trends.

According to Swift, 2024 presents ideal conditions for a BTC price increase.

Swift’s platform monitors the global M2 money supply and its correlation with Bitcoin’s price behavior.

In terms of U.S. dollars, M2 has reached $94 trillion, surpassing previous levels by $3 trillion since Bitcoin’s peak at $69,000 in late 2021.

After dipping to $85 trillion in late 2022, during the depths of the crypto bear market, M2 has rebounded by 10%.

“The most important chart for this bull run has just made a new all-time high,” Swift commented on X. “Are you ready?”

This data aligns with other recent findings that also predict a bullish trajectory for Bitcoin.

Notably, Bitcoin’s performance against the U.S. M1 money supply is breaking out from a seven-year consolidation period, the longest in its history, which suggests significant upside potential.

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As financial conditions ease, additional analysis indicates growing interest in crypto and risk assets among institutional investors.

The on-chain analytics platform CryptoQuant, in its latest “Weekly Report” shared with Cointelegraph, drew parallels to investor behavior in 2020.

It noted, “Indeed, large investors are adding about $1B into Bitcoin, paralleling 2020 before the rally from $10K to $70K.

Back in 2020, Bitcoin hovered around $10k for 6 months with high on-chain activity, later revealed as OTC deals.”

CryptoQuant’s report further emphasized that despite low price volatility, on-chain activity remains high, with $1 billion added daily by new whale wallets, likely in the form of Bitcoin purchases from institutional investors moving into custody wallets.

An accompanying chart from CryptoQuant compares the aggregate cost basis, or realized price, of new whales from 2020 to 2024.

Additionally, CryptoQuant highlighted the increasing inflows to U.S. spot Bitcoin exchange-traded funds (ETFs), which saw their second-highest net inflows on June 4.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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