Ah, behold the curious case of Bitcoin (BTC), which has risen a staggering 8% from its March 11 low of $76,703! This miraculous ascent is largely attributed to the audacious large investors, who, like gallant knights, have charged forth to buy the dip with leverage, as if it were a fine piece of cheese! 🧀
Margin longs on Bitfinex have surged to heights unseen since the fateful November of 2024, with a whopping 13,787 BTC added over a mere 17 days. Currently, this bullish positioning stands at a princely sum of $5.7 billion, signaling a confidence that could make even the most stoic of bears chuckle nervously. 🐻
Some analysts, those wise sages of the financial realm, argue that Bitcoin’s price dances closely with the global monetary base, rising like a loaf of bread in a warm oven as central banks inject liquidity. 🍞
As recession risks loom like a dark cloud, the likelihood of expansionary monetary policies increasing the money supply grows. If this correlation holds, the Bitfinex whales could be poised to capitalize on a rally above $105,000 in the next two months, or perhaps they’ll just swim in circles. 🐋
For instance, our dear X user Pakpakchicken claims to have identified an 82% correlation between the global money supply (M2) and Bitcoin’s price. A chicken with a keen eye, indeed! 🐔
When central banks drain liquidity by raising interest rates or reducing bond holdings, traders become more risk-averse, leading to a weaker demand for Bitcoin. Conversely, during periods of monetary easing, the interest in this digital asset tends to soar, much like a balloon at a child’s birthday party! 🎈
Bitfinex whales go long BTC as M2 bottoms
In the early days of September 2024, Bitfinex margin traders added 7,840 BTC in long positions, coinciding with a period of bearish momentum as Bitcoin struggled to reclaim the $50,000 level for over three months. A true tragedy worthy of a Russian novel! 📖
Despite the downturn, these Bitfinex whales held their positions, and lo and behold, Bitcoin’s price surged past $75,000 less than two months later! Notably, the global M2 money supply bottomed out around the same time these traders increased their Bitcoin exposure, reinforcing the correlation like a stubborn stain on a fine shirt. 👔
Establishing a direct cause-and-effect relationship between money supply and investors’ willingness to accumulate Bitcoin may be as elusive as finding a needle in a haystack, especially given the influence of major events during these periods. 🪡
For example, Donald Trump’s election as US president in November 2024 significantly fueled Bitcoin’s rally due to the new administration’s pro-crypto stance, regardless of global M2 trends and liquidity conditions. A political twist worthy of a soap opera! 🎭
Similarly, Michael Saylor’s latest plan to raise up to $21 billion in fresh capital for Strategy to acquire more Bitcoin could shift market dynamics, even accounting for the $4.1 billion in net outflows from Bitcoin spot exchange-traded funds (ETFs) since Feb. 24. A veritable rollercoaster of finance! 🎢
Strategy remains the largest corporate Bitcoin holder, with 499,096 BTC acquired at a total cost of $33.1 billion, reinforcing its long-term bullish strategy. A strategy as solid as a rock, or perhaps a boulder! 🪨
Clearer crypto regulation, Strategy capital increase
In essence, the expansion of the global money supply may have influenced the increase in Bitfinex margin longs, but Bitcoin’s push toward $105,000 could be primarily driven by industry-specific news and events. A
Read More
- Invincible Season 4: What We Know About Release Date and Plot Speculation!
- ONT PREDICTION. ONT cryptocurrency
- ZK PREDICTION. ZK cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- HBAR PREDICTION. HBAR cryptocurrency
- INJ PREDICTION. INJ cryptocurrency
- NYM PREDICTION. NYM cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- DGB PREDICTION. DGB cryptocurrency
- FIL PREDICTION. FIL cryptocurrency
2025-03-13 21:55