Global Money Supply and BTC ETF Demand Soar

Bitcoin is nearing a critical price point of $96,000, a resistance level that has repeatedly challenged its upward momentum during the consolidation phase. However, sentiment among analysts remains firmly bullish, fueled by a rapidly expanding global money supply.

Crypto analyst Rover stated that “global liquidity is exploding” as the volume of circulating financial capital continues to expand. Digital assets experience increased demand due to rising market liquidity, which in turn boosts Bitcoin prices. The influx of capital into the market creates favorable conditions for Bitcoin to potentially surpass the $96,000 resistance mark during a sustained breakout.

Bitcoin Faces Key Resistance at $96,000

The previous attempts of Bitcoin to surpass the $96,000 resistance level attracted significant attention among investors. The market has shown support at this zone, making it challenging for the price to break through.

Related: Crypto Campaign Urges Swiss National Bank to Diversify with Bitcoin Reserves

The next major targets for Bitcoin’s upward movement after a potential break of $96,000 will be $101,000, followed by $111,000, suggesting an ongoing bullish pattern. If Bitcoin cannot surpass $96,000, then there exists a possibility that its price will fall.

Source: X

The movement in Bitcoin’s market sentiment depends largely on funding rates alongside rising liquidity. Funding rates turn negative when the majority of futures traders open short positions, reflecting bearish sentiment. Historically, such periods of negative funding have preceded Bitcoin price increases, indicating that current trends may cause an upward movement.

Institutional Interest Strengthens Bitcoin’s Outlook

The interest level from financial institutions toward Bitcoin has surged dramatically due to the rising demand for Bitcoin ETFs. BlackRock’s recent $240 million Bitcoin purchase, along with its institutional trust, signifies positive prospects for Bitcoin. The growing institutional support and rising liquidity indicate that the digital asset potential of Bitcoin remains strong, which supports its favorable price trend over the next period.

Related: Coinshares: Bitcoin All-In Mining Cost Reached $137K for Listed Miners in Q4 ’24

Bitcoin’s market value is directly correlated with global financial expansion, as increased liquidity drives demand for cryptocurrencies. The cryptocurrency market indicates that Bitcoin will surpass key obstacles on its path to generating substantial price appreciation.