Bitcoin Poised for Breakout Amid Rising Global Liquidity
The Essentials at a Glance
- The global M2 money supply is growing significantly – a sign of increasing liquidity.
- Bitcoin (BTC) is currently consolidating, but shows signs of a potential breakout.
- Historically, BTC tends to follow such liquidity increases with delayed but strong price movements.
- On-chain data indicates stable network activity and growing user interest.
What Does the Rising M2 Money Supply Mean?
The M2 money supply includes cash, chequing accounts, and short-term deposits. When this metric rises sharply – as is currently observed globally – it signals an expansionary monetary policy. Central banks are injecting more capital into markets to stimulate the economy or finance debt.
For you as an investor, this means fiat currencies are losing purchasing power. Many investors therefore seek alternatives that better preserve value over the long term. Bitcoin benefits from this trend, as its supply is capped at 21 million coins – the amount is limited and cannot be increased arbitrarily.
Bitcoin Remains Stable – Before the Next Move?
Despite the growing money supply, Bitcoin’s price is currently moving sideways. At the time of analysis, the price is around USD 83,640 – an increase of 1.21% within 24 hours. The price is moving within a downward channel, with resistance at USD 88,197 and support at USD 78,668.
This narrow price range suggests a phase of consolidation. Such phases often precede major price movements – especially when combined with macroeconomic stimuli like the current flood of liquidity.
On-Chain Data Shows Network Strength
A look at the blockchain data reveals: Bitcoin usage remains high. The number of new wallet addresses increased by 2.82% over the past week. At the same time, the number of empty wallets dropped by 3.65%. This indicates that more users are actively holding BTC.
The number of daily active addresses remains steady at around 800,000 – despite a slight decline of 1.66%. Overall, these metrics show that the network remains stable. This is a positive signal, especially in a phase without significant price changes.
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Is Bitcoin Preparing for a Breakout?
From a technical perspective, BTC’s price structure continues to tighten. Combined with the expansionary monetary policy, this creates a situation that often leads to sudden price movements. If BTC breaks the resistance at USD 88,197, the price trend could align with global liquidity developments – with corresponding upside potential.
Our Assessment
The current situation is reminiscent of previous phases where Bitcoin reacted to macroeconomic changes with a delay. The combination of a rising M2 money supply, stable network activity, and technical consolidation suggests that BTC may soon take a clear direction.
For you as an investor, this means: closely monitor the price development. An upward breakout is possible – but not guaranteed. Those who are prepared can benefit from the next move.
Sources
- TradingView
- IntoTheBlock
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $82,660.00 |
| 24h % | -0.70 % |
| 7d % | -0.49 % |
| 30d % | -7.02 % |
| 60d % | -15.82 % |
| 1y % | 22.12 % |
| Market Cap | $1,640,802,497,211.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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