Bitcoin Rises as an Indicator of Worldwide Liquidity

Bitcoin has climbed to a one-month peak close to $118,000, fueled by market optimism following the Federal Reserve’s 25-basis-point interest rate reduction and broader liquidity growth Bitcoin Price Hits 1-Month High As Expert Predicts $123,288 Soon … [ 1 ]. Market analysts emphasize the impact of fresh long positions and increasing cumulative trading volume

(CVD), both of which point to bullish sentiment, while open interest (OI) is also on the rise Bitcoin Price Hits 1-Month High As Expert Predicts $123,288 Soon … [ 1 ]. Traders are closely watching $115,440 as a crucial support zone, with $123,700 being eyed as a key resistance level Bitcoin Price Hits 1-Month High As Expert Predicts $123,288 Soon … [ 1 ]. Well-known analyst Michael van de Poppe suggests that surpassing $119,000 could pave the way for a rally toward $137,300 Bitcoin Price Hits 1-Month High As Expert Predicts $123,288 Soon … [ 1 ], whereas Ali Martinez cautions that a drop to $93,600 is possible if support breaks Bitcoin Price Hits 1-Month High As Expert Predicts $123,288 Soon … [ 1 ].

The relationship between

and U.S. M2 money supply has grown stronger, with M2 hitting an all-time high of $21.94 trillion Bitcoin M2 Correlation Triggers Bullish Outlook For 2025 [ 2 ]. Historical patterns indicate that Bitcoin tends to rally about 90 days after liquidity peaks, prompting some analysts to predict prices in the $130,000–$170,000 range if M2 keeps expanding Bitcoin M2 Correlation Triggers Bullish Outlook For 2025 [ 2 ]. Estimates show U.S. M2 could reach $22 trillion by the end of 2025, while global M2 may top out at $127 trillion before starting to contract in 2026 M2-Only Bitcoin Price Predictions (2025-2026): Global Liquidity … [ 3 ]. This trend highlights Bitcoin’s status as a gauge of liquidity, with rising money supply enhancing appetite for risk assets Bitcoin And Crypto Braced For A $9.5 Trillion Fed Price Earthquake … [ 4 ].

Further momentum for Bitcoin comes from greater institutional participation and recent regulatory progress. The U.S. SEC’s approval of standard listing rules for crypto ETFs has paved the way for new products linked to tokens such as

(SOL) and (DOGE), sparking gains among alternative coins Bitcoin Price Hits 1-Month High As Expert Predicts $123,288 Soon … [ 1 ]. At the same time, spot Bitcoin ETFs, like BlackRock’s IBIT, have seen unprecedented inflows, even surpassing gold ETF giants such as the SPDR Gold Trust. This shift signals mounting institutional trust, especially as Bitcoin’s volatility has eased slightly amid heightened trading activity.

Debate continues over Bitcoin’s effectiveness as a hedge against inflation when compared to gold. While gold boasts a 30% year-to-date gain in 2025 and has outperformed Bitcoin, the cryptocurrency’s capped supply and growing institutional backing support its reputation as a long-term value store. Studies reveal that Bitcoin tends to lag during equity sell-offs but shows more resilience than gold during bond market stress, offering a supplementary hedge. In 2025, for example, Bitcoin’s price has increased by 16.46%, outpacing the S&P 500’s 10% rise.

Nevertheless, challenges remain. Sharp increases in inflation or tighter regulations could threaten Bitcoin’s upward trend, as underscored by the Federal Reserve’s careful approach to employment-related risks Bitcoin Price Hits 1-Month High As Expert Predicts $123,288 Soon … [ 1 ]. It’s also worth noting that Bitcoin’s volatility—currently at a 90-day rolling rate of 47.6%—is still much higher than gold’s typical 10–15% range. Experts warn that although ongoing M2 growth and institutional investments favor a bullish scenario, large-scale economic changes or geopolitical events could shift the market’s direction Bitcoin M2 Correlation Triggers Bullish Outlook For 2025 [ 2 ].

To sum up, Bitcoin’s recent rally—driven by M2 expansion and growing institutional interest—makes a compelling case for further appreciation. Even so, investors should remain mindful of regulatory uncertainties, inflationary trends, and potential market swings. The upcoming months will be a crucial test for Bitcoin’s ability to sustain its momentum as monetary policies and the global economic landscape continue to evolve Bitcoin Price Hits 1-Month High As Expert Predicts $123,288 Soon … [ 1 ].