Bitcoin News Today: Bitcoin's $200K Price Target Gains Traction as M2 Growth and On-Chain Metrics Signal Bullish Trends

Bitcoin’s potential ascent toward a $200,000 price target has gained traction as global liquidity metrics and on-chain data align with bullish signals. While the cryptocurrency currently trades at approximately $116,000—a 1.73% decline in the past 24 hours—analysts highlight a critical trend: the global M2 money supply, a proxy for liquidity, is rising once more. Historical patterns indicate that Bitcoin prices typically follow M2 growth with a 10-week lag, suggesting a possible trajectory toward the $200,000 milestone if this trend persists [1].

The M2 metric, which measures total cash, savings, and short-term deposits in the global economy, has surpassed $112 trillion, according to CryptoRank. This expansion implies increased capital availability, potentially driving demand for assets like Bitcoin. The same dynamic fueled Bitcoin’s early 2024 rally, reinforcing the argument that sustained M2 growth could propel the asset higher [1].

On-chain data further supports this thesis. The Spent Output Profit Ratio (SOPR) remains above 1.02, indicating that most on-chain transactions occur at a profit. This metric suggests holders are not panic-selling but rather strategically locking in gains, a behavior typical of early bull markets [1]. Additionally, stablecoin reserves on exchanges have climbed to around $47 billion, signaling that capital is being positioned for potential market entry [1].

Derivatives markets reflect growing optimism. Open interest in Bitcoin futures exceeds $84.2 billion, the highest level in recent weeks, with Coinglass data showing a positive funding rate of +0.0119% as of July 24. While this rate is not excessively high, it indicates that long positions dominate over shorts, suggesting a controlled buildup of bullish sentiment rather than speculative overleverage [1].

Technical indicators also point to a $200,000 target. Fibonacci extension levels on the Bitcoin price chart align with this threshold, which often serves as a key resistance during strong uptrends. With the current price maintaining support above $116,000, analysts argue that sustained liquidity growth and stablecoin accumulation could validate this target within months [1].

However, risks remain. A sharp price decline could trigger liquidations, especially if open interest remains elevated. For now, momentum favors bulls, but traders must monitor whether M2 expansion continues and whether stablecoin reserves translate into actual Bitcoin purchases. The interplay of liquidity, on-chain metrics, and derivatives activity paints a cautiously optimistic outlook, though the $200,000 level remains a projected scenario rather than a guaranteed outcome.

Sources:

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