• Bitcoin edges closer to an all-time high, trading at $122,492 with $87.21 billion in 24-hour volume.
• Crypto Patel notes BTC is only 1.5% below its all-time high, signaling potential for further gains.
• BTC price movements closely track the global M2 money supply, highlighting macroeconomic influence.

Bitcoin continues to rise and draws closer to an all-time high, as commentators note its correlation with global money supply trends. Following recent gains and a market valuation of $2.42 trillion, investors worldwide are showing keen interest in the digital currency.

At the time of writing, BTC is trading at $121,800, representing a 2.19% increase in the last 24 hours. The 24-hour trading volume stands at $87.21 billion, indicating high activity as market participants carefully watch every price move.

Bitcoin Just 1.5% from All-Time High

Prominent crypto analyst Crypto Patel highlighted that Bitcoin is now only 1.50% below its all-time high. This proximity suggests a potential for further increases if the upward trajectory is sustained.

Bitcoin Price Moves Linked to Global Money Supply

Patel further emphasized an important point regarding Bitcoin’s movement: that the cryptocurrency operates like a world money sponge.

Crypto Patel reported that the BTC price frequently follows moves in the world’s M2 money supply. Although the relationship isn’t perfect, it is strong enough to show that monitoring global liquidity trends helps predict BTC’s next major move.

The correlation highlights how macroeconomic factors, such as money printing and central bank policies, can influence the cryptocurrency markets.

Bitcoin Derivatives Market Gains Strength

Bitcoin’s derivative market showed a significant increase in activity, with total volume rising 18.63% to $108.81 billion. The rise reflects greater market participation and stronger price movements as BTC approaches all-time highs.

Open interest also gained, increasing 2.58% to $82.49B. Such persistent growth reveals that more positions are being opened in the markets, suggesting that traders anticipate further price movement in the short term.

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OI-Weighted Funding Remains Positive

The OI-weighted funding rate is still 0.0118% and remains positive. This means that long positions are paying short positions, an indication that bullish sentiment dominates despite recent price volatility.

The persistent positive funding rate indicates that optimism within the derivatives market remains resilient. Although volatility is inevitable, this sentiment supports conviction in BTC’s surging trajectory.

Also Read | Bitcoin Eyes $120,000 Breakout as Crypto Market Cap Hits $4.06 Trillion