Bitcoin News Today: Bitcoin Eyes $200K as M2 Expansion and On-Chain Metrics Signal Bull Run

Bitcoin’s price trajectory has reignited interest in the cryptocurrency market, with recent on-chain and macroeconomic indicators suggesting a potential surge toward $200,000. As of the latest data, Bitcoin (BTC) trades at approximately $116,000, reflecting a 1.73% decline over the past 24 hours. However, underlying trends in global liquidity metrics and market positioning signal a possible bullish reversal.

The global M2 money supply, a broad measure of liquidity encompassing cash, savings, and short-term deposits, is rising again. Historical correlations indicate that Bitcoin prices tend to follow M2 expansions with a 10-week lag. With M2 now surpassing $112 trillion, analysts project BTC could reach $200,000 by September if this trend persists [1]. This pattern mirrors the early 2024 rally, reinforcing the potential for further upside if money supply growth continues [1].

On-chain metrics further support the bullish case. The Spent Output Profit Ratio (SOPR), which measures whether Bitcoin transactions are profitable, currently stands at 1.02. This suggests holders are selling for gains but not aggressively liquidating, a typical behavior during early bull phases [1]. Traders are also increasing exposure through futures markets, with open interest exceeding $84.2 billion—a recent high—and positive funding rates indicating long positions dominate the derivatives market [1]. While leverage remains moderate, the absence of speculative overreach suggests the M2-driven narrative is grounded in liquidity rather than hype [1].

Stablecoin reserves on exchanges remain elevated at $47 billion, signaling capital ready to flow into crypto markets. This aligns with M2 expansion patterns, where cash accumulates before deployment. Additionally, spot Bitcoin outflows have risen, indicating holders are moving funds to long-term storage, reducing sell pressure and supporting price resilience [1]. Technical analysis reinforces the case, with Fibonacci extension levels pointing to $200,000 as a potential target during sustained uptrends [1].

Despite these optimistic signals, risks persist. A rapid price decline could trigger liquidations, though current momentum favors bullish positioning. The convergence of macroeconomic liquidity, on-chain confidence, and technical indicators paints a compelling case for further gains, provided the M2 trend holds.

[1] Source: [Bitcoin Price Target Is $200K if This Liquidity Trend Holds](https://coinmarketcap.com/community/articles/68847a94acba474bc45021b5/)