Bitcoin Surges 4% to $109,730 as Global Money Supply Hits $55 Trillion

Bitcoin's price surged to $109,730, marking its highest point since June 12. This rally was driven by the global money supply reaching a new all-time high above $55 trillion. The bullish momentum is further supported by a strong bullish engulfing pattern, which, if confirmed by a daily close above $108,500, could signal new highs in the near future.

The recent price jump from $105,200 to $109,500 was accompanied by a significant increase in derivatives activity. Open interest across major futures exchanges rose by 10%, or approximately $3.2 billion, indicating a substantial influx of capital into the market. This increase was primarily driven by long positions, suggesting confidence in further price increases.

Despite the rise in price and open interest, funding rates remained stable across perpetual futures markets. This stability suggests a balanced sentiment between long and short traders and implies that the rally was not driven by excessive leverage. Stable funding during a price increase often indicates a more sustainable uptrend.

A notable short squeeze also accompanied the move, with over $196 million in short positions liquidated within the past 12 hours. This liquidation cascade likely accelerated Bitcoin’s push past key resistance levels. Additionally, the Bitcoin Coinbase Premium Index stayed elevated throughout the move, suggesting consistent spot buying pressure from institutional and retail investors in the US, further validating the buy-side strength.

Market analysts are increasingly confident that a new all-time high for Bitcoin is imminent. According to trader Rekt Capital, a record weekly close above $109,300 this Sunday could place BTC above its final major resistance zone, effectively “unlocking” price discovery and paving the way for new highs. Analyst Jackis highlighted that Bitcoin recently reached its lowest volatility levels since 2023, a rare occurrence seen only seven times in its history. “Every time we’ve hit these levels, a major volatility spike followed within five weeks, often sooner,” Jackis noted, suggesting a significant move is on the horizon.

Technical analyst Titan of Crypto pointed to a confirmed bullish MACD crossover on the daily chart as a key momentum signal. The analyst added that BTC is attempting a breakout from a bullish flag pattern, with a successful push likely triggering a “magnet effect” toward the $137,000 region. This technical analysis, combined with the current market conditions, suggests that Bitcoin is poised for further gains and a potential new all-time high.