Bitcoin’s New Highs: Why Everyone’s Calm While the Price Soars 🚀💰

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Key takeaways:

  • Bitcoin’s latest price hike is like a quiet party where no one showed up—funding rates and trading sentiment are as lively as a sloth on a Sunday.

  • With stablecoin supply and global M2 growth on the rise, it seems there’s a hidden treasure chest waiting to be opened. 🏴‍☠️

  • Long-term holders are holding on tighter than a toddler to their favorite toy, expecting Bitcoin to keep climbing.

So, Bitcoin (BTC) decided to throw a little celebration on May 21, reaching a staggering $111,860 on Binance the next day. But instead of confetti and fireworks, we got a collective shrug from the market. Economist and crypto commentator Alex Krüger pointed out that this is “the least euphoric new all-time highs” for Bitcoin. Who knew a price surge could feel so…meh?

The chart shows that the current BTC funding rate is lower than my expectations for a family reunion—significantly below the highs we saw in March and November 2024. Last year, the funding rate was six times higher in Q1 and three times higher in Q4. Talk about a dramatic drop!

These low rates suggest that the futures market is as exciting as watching paint dry, with the rally being driven by spot buyers instead of those risky leveraged traders. Less risk of over-leveraged corrections means fewer heart attacks for investors. 😅

It seems Bitcoin hasn’t hit the euphoric heights yet. The untapped liquidity in the crypto ecosystem is like a buffet that no one has touched. Stablecoin market capitalization has jumped to 14% in 2025. Tether’s (USDT) market cap went from $139 billion to $152 billion faster than I can finish a slice of pizza, while Circle’s USDC supply increased by 35% to $58 billion. 🍕💸

Stablecoins are like the friendly bouncers at the crypto club, letting new capital in while keeping the riff-raff out. Their growth indicates a substantial pool of liquidity just waiting to dive into Bitcoin and other crypto assets.

On top of that, global liquidity trends are giving us a nice tailwind. The global M2 money supply, which measures the total money in circulation, grew by 5% in Q1 2025, thanks to some monetary policy adjustments in the US, EU, and Japan. It’s like they’re all trying to outdo each other in a money-printing contest!

CryptoMoon reported a strong correlation—over 80%—between Bitcoin’s price and global liquidity, typically with a 60-day lag. So, if you’re waiting for more buying pressure, just grab some popcorn and sit tight. 🍿

“Muted” profit-taking reflects confidence in Bitcoin

According to Glassnode data, Bitcoin’s current market dynamics are as fascinating as watching grass grow. Despite the new highs, profit-taking among Bitcoin holders is as restrained as a cat at a dog show. The data analytics platform noted,

“When $BTC hit all-time high yesterday, total profit-taking volume was around $1.00B – less than half the amount realized when #BTC first crossed $100K last December, which hit $2.10B. Despite a higher price, profit realization was far more muted.”

This muted activity suggests that long-term holders are not rushing to cash out, which typically reflects confidence in further price appreciation. Or maybe they just forgot their passwords. 🤷‍♂️

The lack of widespread participation indicates that Bitcoin’s rally is not a crowded trade, leaving plenty of room for new capital to enter the market. The restrained profit-taking, combined with low speculative activity in the futures market, paints a picture of a market far from overheated or “euphoria.”

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2025-05-22 19:28