Bitcoin and altcoins contributed to the crypto market rally, as BTC follows the global M2 supply and aims to achieve 71% market dominance soon.
The crypto market has experienced a significant increase in value today, with Bitcoin (BTC) prices surging by 4% to $109,500.
This indicates that the market is poised to reach new all-time highs and price discovery shortly.
The most recent data suggests that BTC has been closely monitoring the M2 Money supply, and its next destination maybe $125,000.
Ethereum (ETH) has experienced a 7% increase, while Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) have all experienced a 5% increase. Other altcoins have also joined the celebration.
The announcement of the Trump account and the anticipated reduction in the Federal Reserve’s interest rate have served as further catalysts.
Crypto Market Experiences Surge As BTC Follows Global M2 Index
Bitcoin’s price is on the rise, supported by a robust technical setup and macroeconomic factors, in anticipation of Wednesday’s US Consumer Price Index (CPI) data publication—consequently, BTC endeavors to join the price discovery zone by adhering to the global M2 money supply.
USUS M2 has recently reached record levels, and the global M2 money supply has been on a consistent upward trajectory.
The crypto market has experienced favorable conditions for optimistic momentum due to this liquidity surge.
The chart below illustrates that BTC prices have been based on M2 trends as of June 5.
The 71-day offset chart between Bitcoin and M2 supply, as depicted in the aforementioned image, demonstrates that macroeconomic liquidity trends are bolstering the price action of BTC.
Additionally, the $1 billion USDT minting on the Tron blockchain could be a liquidity catalyst for establishing a new Bitcoin all-time high.
Arthur Hayes Believes That Bank Of Japan May Soon Announce Rate Cuts
Arthur Hayes, the former CEO of BitMEX, has suggested that the crypto market rally may persist if the Bank of Japan (BoJ) transitions to quantitative easing (QE).
The Bank of Japan has maintained a steadfast stance that inflation remains above its desired level.
Hayes conjectured that the majority of Japanese citizens may not be in favor of such an action;
however, he also observed that risk assets could receive a substantial boost if the Bank of Japan (BOJ) postpones quantitative tightening (QT) and reintroduces selective quantitative easing (QE) at its June meeting.
Bitcoin’s Dominance Is Increasing; However, Is Altcoin Season Imminent?
Bitcoin’s dominance is currently forming a rising wedge pattern, which is on the brink of its peak.
According to observers, this technical configuration frequently indicates a reversal or breach.
Capital could transfer from Bitcoin to altcoins within the next three months.
Investors and traders closely monitor the market dynamics to validate the anticipated trend reversal.
