Source: Cointelegraph.com NewsKey takeaways:<\/p>\n
Bitcoin\u2019s rally to new price highs happened as funding rates and trading sentiment remained unusually subdued.
\nRising stablecoin supply and global M2 growth indicate untapped liquidity and the potential for further price increases.
\nLong-term holders are not aggressively selling, reflecting their expectation for continued Bitcoin price appreciation.<\/p>\n
Bitcoin (BTC) hit a new all-time high on May 21, with prices rising to $111,860 on Binance on May 22, but the markets lack the state of frenzy associated with new highs. Economist and crypto commentator Alex Kr\u00fcger noted that \u201cthis is the least euphoric new all-time highs\u201d for Bitcoin, after highlighting subdued funding rates for Bitcoin across crypto exchanges. Source: Cointelegraph.com NewsKey takeaways: Bitcoin\u2019s rally to new price highs happened as funding rates and trading sentiment remained unusually subdued. Rising stablecoin supply and global M2 growth indicate untapped liquidity… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129803"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129803"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129803\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129803"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nBitcoin price and aggregated funding rate. Source: CoinalyzeThe chart illustrates that the current BTC funding rate is significantly below previous market highs observed during March and November 2024. The funding rate was six times higher in Q1 and three times higher in Q4 last year.
\nThese low rates indicate minimal speculative activity in the futures market, with the rally driven by spot buyers rather than leveraged traders, reducing the risk of over-leveraged corrections.\u00a0
\nSuch a scenario also indicates that Bitcoin might not have reached a state of euphoria yet.\u00a0
\nThe availability of untapped liquidity in the crypto ecosystem underscores the potential for further growth. Stablecoin market capitalization, often a leading indicator of incoming capital, has risen to 14% in 2025. Tether\u2019s (USDT) market cap jumped to $152 billion from $139 billion in January, while Circle\u2019s USDC supply has increased by 35% to $58 billion.\u00a0
\nTotal stablecoin supply. Source: Token TerminalStablecoins often act as a bridge for new capital entering the crypto market, and their growth suggests a substantial pool of liquidity that has yet to be fully deployed into Bitcoin and other crypto assets.\u00a0
\nAdditionally, global liquidity trends provide further tailwinds. The global M2 money supply, which measures the total money in circulation across major economies, grew by 5% in Q1 2025, driven by monetary policy adjustments in the US, EU, and Japan.
\nCointelegraph reported a strong correlation, exceeding 80%, between Bitcoin\u2019s price and global liquidity, typically with a 60-day lag, pointing to further buying pressure in the coming months.
\nBitcoin price and Global M2 supply. Source: X.comRelated: These 4 memecoins can outperform Bitcoin this cycle
\n\u201cMuted\u201d profit-taking reflects confidence in Bitcoin
\nGlassnode data adds another layer of insight into Bitcoin\u2019s current market dynamics. Despite the new highs, profit-taking among Bitcoin holders remains restrained. The data analytics platform noted,
\n\u201cWhen $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.\u201d
\nThis muted activity suggests that long-term holders are not rushing to cash out, which typically reflects confidence in further price appreciation.
\nBitcoin spent volume by age data. Source: X.comThe lack of widespread participation indicates that Bitcoin\u2019s rally is not a crowded trade, leaving 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 \u201ceuphoria\u201d.
\nRelated: Bitcoin tops Amazon market cap on \u2018Pizza Day\u2019 as price sets new highs
\nThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"