Global liquidity metrics continue to signal potential opportunities for Bitcoin (BTC) investors as analysts debate BTC’s price peaks relative to global M2 money supply changes. BTC has closely followed shifts in global M2 year-over-year (YoY) growth rates, which measure the overall money supply, offering clues to future peaks.
Historically, BTC peaks have occurred around the time when YoY M2 changes begin to taper off, aligning with broader market liquidity trends. Analysts believe that this could happen as early as Q1 or Q2 next year, with BTC possibly reaching a high before any decline in global liquidity YoY growth.
Bitcoin Breaks Key Resistance But Can it Hold?
With liquidity possibly peaking in early 2025, analysts are watching to determine if BTC would surge further or face significant resistance.
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As of press time, Bitcoin’s price had broken past $72,000, a level where it previously faced four consecutive rejections. Analysts speculate this recent momentum could push BTC toward a local top near $84,200, according to MVRV pricing bands.
While some had previously anticipated a peak around late 2025, recent metrics suggest that forward-looking markets are pushing up the timeline, with an expected climax for BTC price action in early to mid-2025.
This aligns with an uptick in the MVRV ratio, which indicates whether BTC is potentially overvalued or undervalued based on its current market price.
BTC Open Interest Surge as Dominances Nears Peak
Open interest across derivatives markets also hit new highs of $22.77 billion, showing renewed market enthusiasm for Bitcoin as investors anticipate further growth.
While BTC experienced an unprecedented eight-month accumulation in the all-time high (ATH) region, this cycle’s pattern differs from previous ones, resembling a mix of both the 2013 and 2021 patterns.
Many traders are waiting to see if BTC can sustain its breakout above $72,000. Should BTC fail to maintain these levels, altcoins would likely benefit from increased attention.
Bitcoin’s dominance at historical highs has previously signaled a redistribution of interest across altcoins, hinting that altseason could emerge sooner than anticipated.
Bitcoin’s dominance—a measure of BTC’s share of the total crypto market capitalization—also showed notable growth, signaling that investors favor Bitcoin over altcoins for now. However, Bitcoin dominance neared a potential resistance level, which has historically hinted at upcoming altcoin rallies.
Analysts have observed that BTC dominance can often mark reversal points, where BTC stabilizes or retraces, and altcoins gain momentum. This market behavior, if it recurs, could set the stage for a potential “altseason,” with many speculating that significant altcoin activity could last 1.5 to 2 years.
In the broader crypto landscape, retail investors have shown less interest in altcoins than in previous cycles, focusing heavily on Bitcoin.
However, memecoins and a handful of trending altcoins still capture attention, and if Bitcoin reaches its predicted peak, altcoins could experience a surge as investors look to diversify.
When to Anticipate a Top?
For now, Bitcoin’s price journey remains tied closely to global liquidity trends, with early signs pointing to a potential peak around early to mid-2025 as analysts allege on X.
If BTC continues to follow historical trends, the current cycle could mark a major turning point for both Bitcoin and the wider cryptocurrency market, attracting both institutional and retail interest in BTC’s price action.
As Bitcoin prepares to tackle historical resistance levels, investors remain alert to the potential shifts in dominance and liquidity that could define the market in the coming months.
