Bitcoin Receives Major Boost Amid Market Turmoil and Liquidity Trends

Bitcoin surged to $111K amid global liquidity expansion, closely trailing the M2 money supply with a consistent 10-week delay.

Ross Ulbricht received a 300 BTC donation as major trader James Wynn faced $65M in liquidations during heightened market volatility.

From late 2023 to mid-2025, Bitcoin’s price growth aligned with global M2 trends, underscoring its increasing sensitivity to liquidity shifts.

Ross Ulbricht, the founder of the infamous Silk Road marketplace, received a surprise donation of 300 BTC worth $31.4 million. Lookonchain reported the transfer to his donation wallet just eight hours ago. At the same time, the market faced a sharp downturn

James Wynn, a prominent trader, was liquidated for 520 BTC and 982.5 million kPEPE—worth $65.6 million combined. His remaining positions include 137.9 BTC and 260.73 million kPEPE. His total PnL stands at a massive loss of $17.76 million. These events unfolded as Bitcoin hit $111,032, highlighting growing volatility and investor uncertainty.

Bitcoin Tracks Global Liquidity with a 10-Week Delay

Besides the trading turmoil, Bitcoin continues to shadow the global M2 money supply. From September 2023 to June 2025, Bitcoin's price steadily followed M2 trends. The cryptocurrency lagged the global liquidity index by approximately 10 weeks during this 21-month window. Bitcoin began at $26,000 in September 2023. It peaked at $111,032 by June 2025. During the same period, global M2 surged from 40,000 to 150,000 units. This correlation reveals the impact of expanding liquidity on digital assets.

Source: Mikybull Crypto

Furthermore, from December 2023 to September 2024, both metrics displayed the strongest alignment. Bitcoin increased from $42,000 to $65,000 throughout this time. M2 rose from 50,000 to 90,000 units in the meantime. As a result, the rising liquidity background was closely reflected in the Bitcoin price behavior.

Divergence and Renewed Momentum in 2025

However, a brief divergence emerged in late 2024. Bitcoin surged past $100,000 while M2 plateaued temporarily. This deviation suggested investor anticipation or capital inflow beyond liquidity expansion alone. Additionally, as M2 resumed growth in 2025, Bitcoin climbed to new highs. Despite higher volatility, the cryptocurrency maintained its correlation with liquidity. The sharp rallies and sudden corrections in BTC contrasted with M2’s smoother curve.

Given this data, Bitcoin would be priced at 111,032 while the global M2 would stand at 104,000 units. The pattern of a 10-week lag continues to stay consistent. So, traders could view the lag as a timing mechanism for engaging in Bitcoin during shifts in liquidity. These changes solidify Bitcoin's further association with worldwide monetary trends. Greater liquidity means greater upside for Bitcoin, though with the requirements of volatility and risks.

The post Bitcoin Receives Major Boost Amid Market Turmoil and Liquidity Trends appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.

The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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