Bitcoin Surges 1.38% to $105,112 as Global Liquidity Hits $140 Trillion

Bitcoin has shown remarkable resilience as global liquidity approached $140 trillion, nearing all-time highs. This surge in liquidity was driven by a weaker U.S. dollar and a dip in the MOVE Index, which supported Bitcoin's uptrend. The weekly liquidity growth of $0.46 trillion, a 0.33% increase, reinforced the macro support for Bitcoin's bullish bias.

The 3-month Rate of Change (RoC) remained elevated, indicating that Bitcoin's breakout to $78,000 was not a fleeting phenomenon. Historically, a rising 3-month RoC aligns with bull market conditions and a risk-on appetite. This trend has been consistent since the initial breakout, supporting the uptrend despite shifting geopolitical risks.

Geopolitical tensions, particularly between the U.S. and Iran, have de-escalated, reducing fear-related volatility. While a direct conflict could have spurred liquidity through emergency spending, the current market sentiment favors slow and steady growth over chaos. This lower volatility environment is conducive to assets like Bitcoin, which thrive on confidence and consistent capital flows.

Institutional flows into Bitcoin have shown no signs of slowing down. A whale made a significant withdrawal of 2,263 BTC, worth $235.02 million, with 2,100 BTC sent to cold storage. This hoarding behavior indicates increased confidence in Bitcoin as a long-term trend and a commitment to self-custody. Additionally, Bitcoin ETFs saw $350.48 million in net inflows over the past ten days, marking the 10th straight day of positive flows. Major players like BlackRock and Fidelity led the inflows, with smaller funds also showing healthy participation.

On the 15-minute chart, Bitcoin surged past $105,000, liquidating short positions en masse. A strong bullish candle supported a rapid price increase to $105,112 from $103,697. The CVD dropped to -10.438K, confirming that aggressive short-selling failed to hold the line. Open Interest (OI) fell to 289.18K from 290.84K, indicating the liquidation of short positions rather than fresh long entries. This classic short squeeze fueled further momentum for the ongoing bull market.