Bitcoin is holding around $71,000 – what to expect
Bitcoin's continued gains are about to gain momentum due to an unprecedented increase in global liquidity.
On June 5, Philip Swift, creator of the on-chain data platform LookIntoBitcoin, published a new analysis in which he revealed that global liquidity is approaching the $100 trillion mark.
The report states that global liquidity trends, which have a strong impact on crypto markets, currently create optimal conditions for a substantial rise in the prices of Bitcoin in 2024
Swift's platform monitors the global M2 money supply and correlates it with the movement of BTC. Current M2 supply, measured in US dollars, has reached $94 trillion – an all-time high and $3 trillion above the level when Bitcoin peaked at $69,000 in late 2021.
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Investing in Bitcoin is still in its infancy - Franklin TempletonSince hitting a local low of $85 trillion in late 2022, which coincided with the bottom of the crypto-bear market, M2 supply has recovered 10%.
Swift comments in X (Twitter), noting:
The most important chart for this bull run just made a new all-time high.
This data coincides with other recent liquidity-based findings that have also made bullish predictions about Bitcoin's future.
As financial conditions become more favorable, additional analysis points to increasing interest from institutional investors in cryptocurrencies and other risk assets.
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Is it a good time to buy Bitcoin at this price?In his last “Weekly report', analysis platform CryptoQuant drew a parallel to investor behavior in 2020.
The report states that major investors are currently injecting around $1 billion into BTC, reminiscent of the period before the 2020 rally from $10,000 to $70,000. In 2020, Bitcoin stayed around $10,000 for six months with high activity on the chain, which was later revealed as OTC trades.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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