Bitcoin Bull Run's 'Most Important Chart' Hits New $94 Trillion All-Time High

Cryptocurrency

Summary:

BTC price discovery is all but a given now that global liquidity is breaking into undiscovered territory, Bitcoin analysis suggests.

Bitcoin stands to boost its current bull run thanks to a record high in global liquidity.

New analysis published on June 5 by Philip Swift, creator of on-chain data platform LookIntoBitcoin, shows liquidity worldwide nearing $100 trillion.

Global liquidity record calls for BTC price copycat move

Bitcoin and crypto markets are famously sensitive to global liquidity trends, and in 2024, conditions could not be more conducive to BTC price upside.

That is the conclusion from Swift, whose platform tracks the world’s M2 money supply and compares it to BTC price behavior.

In United States dollar terms, M2 is now at $94 trillion — more than ever before and $3 trillion higher than when Bitcoin hit its old $69,000 all-time high in late 2021.

Since hitting local lows of $85 trillion in late 2022 — coinciding with the pit of the crypto bear market — M2 has rebounded a full 10%.

“The most important chart for this bull run has just made a new all-time high,” Swift wrote in part of accompanying commentary on X.

“Are you ready?”Bitcoin vs. global M2 liquidity. Source: Philip Swift

The data chimes with other recent liquidity-based findings, which have equally drawn bullish conclusions about where Bitcoin is headed.

BTC versus the U.S. M1 money supply is in the process of breaking out from a seven-year consolidation period — the longest in Bitcoin’s history — with serious upside implications as a result.

Bitcoin investor trend copies 2020

As financial conditions ease, further analysis suggests an increasing appetite among institutional investors for crypto and risk assets.

In its latest "Weekly Report” sent to Cointelegraph, the on-chain analytics platform CryptoQuant drew comparisons with investor behavior in 2020.

“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,” it revealed.

“Now, despite low price volatility, on-chain activity remains high, with $1B added daily by new whale wallets, likely in the form of Bitcoin purchases from institutional investors entering into custody wallets.”

Bitcoin new whale entity realized cap comparison (screenshot). Source: CryptoQuant

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

CryptoQuant likewise highlighted increasing inflows to the U.S. spot Bitcoin exchange-traded funds, or ETFs, these seeing their second-highest net inflows on June 4. Bitcoin Bull Run's 'Most Important Chart' Hits New $94 Trillion All-Time High_3

Bitcoin Bull Run's 'Most Important Chart' Hits New $94 Trillion All-Time High_3

U.S. spot Bitcoin ETF holdings (screenshot). Source: CryptoQuant

Source: Cointelegraph

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