On March 11, Bitcoin (BTC) prices increased by 8 %. It is believed that this is due to the fact that some major investors actively used leverage to buy a dip.
Bit Coin’s long position in Bit Finex has increased by 13,787 BTCs in the last 17 days, which has reached 7.7 billion at this time. Despite the recent decline in prices, this rapid advantage of the market shows the market confidence in Bitcoin’s upside.
BTC Price (Orange) and Bit Finex Long Position (blue)
Bitcoin prices are closely linked to the global financial base (liquidity supply through financial softening), some analysts said. When the risk of recession increases, the financial softening policies can increase the fund, which is believed to increase the prices of bitcoin.
If this connection has been maintained, the Big Bit Finex investors could potentially aim to increase more than 105,000 in the next two months.
For example, the X -consumer Pakakkin claims that global money supply (M2) and Bitcoin prices have 82 % of the link.
M2 trends and long positions in Bitcoin
If the central bank tighten the liquidity through interest rates and the contract bond holding, the traders will stabilize their risk and reduce the demand for bitcoin. On the other hand, in the period of financial relaxation, people have a tendency to invest in bitcoin to raise prices.
In early September 2024, Bit Finex margin traders added a long position of 7840 BTC. At that time, BitCoin was in a bear market, unable to exceed 50,000, for more than three months, but in two months he crossed 000 75,000.
This time is favorable when the global M2 money supply equipment is eliminated, indicating the increase in funding supply and the increase in bitcoin prices.
However, it is difficult to prove directly between providing money and willing to invest in bitcoin. In particular, if the major events of the market are found in parallel, their effect is more complicated.
For example, Donald Trump’s election in the US presidential election in November 2024 was a sharp factor for the cryptocurrency market, and was an element that raised Bitcoin prices, regardless of M2 trends.
BitCoin ETF Influ Source: Konglas
The fact is that Michael Seller’s strategy (former microstent) is planning to raise up to $ 21 billion and is trying to move forward with more bitcoin purchases, which can change the dynamics of the market. On the contrary, since February 24, the Bitcoin Exchange Traded Funds (ETF) has reached 1 4.1 billion.
The strategy is currently 499,096 BTC (worth about $ .1 33.1 billion) and maintains a long -term fast strategy in the Bitcoin market.
Explain the rise of cryptocurrency rules and capital
It is possible that the extension of the M2 has affected the long -standing position of Bit Finex, but Bitcoin, the possibility of more than 105,000, will be widely affected by the news and events of the industry.
According to a Wall Street Journal report on March 13, the Trump campaign official is considering investing in Binens. However, the US government’s friendly attitude toward cryptocurrency has not come to the benefits of solid market.
For example, the US Currency Supervisory Agency (OCC) still does not provide a clear view of whether banks already need approval when digital assets or when managing stable queens.
Meanwhile, the acting chairman of the US Securities and Exchange Commission (SEC) Mark Weda has announced that he will eliminate cryptocurrency clauses from the proposed rules that increase the exchange definition.
The SEC is examining the requests of the Physical Butt Coin ETF issuers, and is considering allowing “under -writing and getting rid of the physical form” in which the company exchange bitcoin directly instead of the traditional cash payment method.
Currently, the global macroeconomic environment is deteriorating, which puts pressure on bitcoin prices. However, this situation may also be a factor that forces the government to implement economic stimulation measures, which in turn increases the supply of M2.
If this trend continues, the possibility of “we will reach 000 105,000 by May 2025” will become a reality. In some cases, it can exceed it.
The insights and interpretations of this article are the author’s own and does not necessarily reflect the views of the quintal graph. This article does not include investment suggestions or recommendations. Every investment or transaction involves a risk, and readers should make their own research and make decisions.
