Bitcoin Surges 10% to $110,000 as Global Money Supply Hits $55 Trillion

On July 3, Bitcoin's price surged to a three-week high, surpassing $110,000. This recovery was driven by a global increase in the money supply (M2), which reached a new all-time high of over $55 trillion. The rise in Bitcoin's price was accompanied by positive signals from Ethereum and other altcoins, indicating a broader market recovery.

Analysts attributed the market growth to macroeconomic liquidity, which eventually finds its way into risky assets like cryptocurrencies. Rachel Lucas, a crypto analyst, noted that while this liquidity does not always lead to immediate price movements, it contributes to the overall market growth. She emphasized the need for a sustained catalyst, such as clearer future interest rates from the Federal Reserve or increased investment in ETFs, for a true breakout to all-time highs. Institutional investment has been a key driver of this rise, and continued investment is crucial for a decisive breakthrough.

On July 1, spot Bitcoin ETFs recorded outflows for the first time in 15 days, which may have indicated investor doubts. However, the next day, July 2, the total inflows into exchange-traded funds reached a new all-time high, pulling Bitcoin’s price higher. This fluctuation in ETF flows reflects the dynamic nature of investor sentiment and its impact on the market.

Several factors contributed to the potential growth of Bitcoin. These include U.S. President Donald Trump's praise for a new trade agreement with Vietnam, which opened market access for U.S. manufacturers. Additionally, Ripple's application for a federal banking license and renewed hopes for a Fed rate cut after mild statements from U.S. central bank officials also played a role. Given Bitcoin’s solid breakout from its recent sideways range, analysts are becoming more confident that a new all-time high is imminent.

Market researcher Jackis noted a rare phenomenon: Bitcoin volatility recently reached its lowest levels since 2023. Historically, such low volatility has been followed by a massive spike within five weeks. Titan of Crypto, a technical analysis specialist, highlighted the bullish crossover of the MACD indicator on the daily chart, considering it a strong momentum signal. He also noted that Bitcoin is attempting to break out of a bullish flag pattern, with a potential exit to the $137,000 level if successful.

Altcoins, particularly Ethereum, are emerging from the shadows. Ethereum and other altcoins have shown signs of life following Bitcoin, with ETH's price adding more than 8% over the last 24 hours, breaking above the $2,600 mark. Zach Pandl, head of research at Grayscale, expects new highs for many tokens in the second half of the year, despite current asset valuations remaining within recent ranges. He attributed this optimism to recent crypto-ETP endorsements, which could boost investor confidence and attract capital from traditional finance into altcoins. The growing regulatory clarity in the U.S. is also likely to attract more users and capital to the crypto ecosystem.

CryptoQuant expert Carmelo Aleman is positive about Ethereum. According to his data, accumulation addresses that meet strict criteria have set a new historical record, holding approximately 22.75 million ETH as of June 30, up 35.97% for the month. The average purchase price as of July 1 was $2,114.70, and at Ethereum’s current price of around $2,600, these addresses are up over 23%. Aleman also pointed out a new all-time high in liquid staking volume at 35.56 million ETH, indicating that the majority of accumulation addresses belong to institutional investors, ETFs, and large holders who are profiting from liquid staking as they await further price appreciation.