Bitcoin hit new highs above $113,800 as stablecoin reserves surged and retail investor-driven selling subsided . With the crypto asset possibly entering a new phase of price discovery, liquidity signals are lighting up, suggesting the rally may have more fuel in the tank .
Several factors are contributing to Bitcoin's price surge. A significant boost comes from the surge in Bitcoin's liquidity, linked to global M2 money supply growth . This surge in liquidity is expected to have a positive impact on Bitcoin, as historical data shows a strong correlation between Bitcoin's price movements and the M2 money supply . Furthermore, institutional adoption of Bitcoin has significantly increased, with major players accumulating Bitcoin at an accelerated rate .
The role of spot Bitcoin ETFs is also critical. U.S. spot Bitcoin ETFs surpassed $50 billion in total net inflows, showing strong institutional interest . Recently, these funds saw a net inflow of $218 million, led by BlackRock, Ark, and Grayscale . Moreover, Bitcoin futures and options have become the new arena for significant capital inflows .
Bitcoin powered past $112,000 to another record high , its first since late May, before consolidating in early trade on Thursday . Bitcoin's price nudged above the top trendline of a descending channel on Wednesday, paving the way for a continuation move higher . The measuring principle projects an upside target if $146,400 . Investors should watch major support levels on bitcoin's chart around $107,000 and $100,000 .
Analysts such as SunflowerQuant pointed to a bullish development in the Stablecoin Supply Ratio (SSR) MACD, a metric that tracks the market's available buying power . The SSR MACD, which tracks momentum shifts, has just made a bullish crossover, where the MACD line moves above its signal line . This type of crossover has historically appeared ahead of new capital inflows and stronger upward momentum in Bitcoin's price .
Overall, Bitcoin's surge is supported by increased liquidity, institutional adoption, and positive technical signals, suggesting potential continued upward momentum .