Bitcoin recently hit a new all-time high, surging past $111,860 on Binance. While market sentiment remains relatively subdued compared to previous highs, analysts attribute this to the absence of usual speculative frenzy. Instead, Bitcoin is being propelled by spot buyers rather than leveraged traders, suggesting less risk of sudden correction events. This calm momentum has fueled predictions for further price growth fueled by untapped liquidity and a strong correlation with global M2 money supply.
Several key factors are contributing to this positive outlook:
* **Stablecoin Surge:** Stablecoin market capitalization is currently exceeding 14% in 2025, indicating a significant influx of capital into the crypto ecosystem. This suggests a robust pool of funds readily available for investment in Bitcoin and other assets.
* **Global Liquidity:** Global M2 money supply growth, particularly driven by monetary policy adjustments in major economies such as the US, EU, and Japan, aligns strongly with Bitcoin’s price movements. Cointelegraph reports a correlation exceeding 80% between Bitcoin price and global liquidity, often with a 60-day lag. This suggests further buying pressure is likely in upcoming months.
* **Muted Profit-Taking:** Bitcoin holders have exhibited restrained profit-taking, suggesting confidence in continued price appreciation. Despite the recent surge, long-term investors haven’t rushed to sell their holdings, contributing to the market’s calm and measured environment.
In a nutshell, Bitcoin’s current trajectory is fueled by strong fundamentals rather than speculative exuberance, highlighting its potential for sustained growth.