Summary:
Spot Bitcoin ETFs have reached record inflows of $17.8 billion this year.
Bitcoin correlates with global M2 supply 83% of the time, indicating strong liquidity sensitivity.
Recent monetary easing from the US Federal Reserve and PBOC boosts global liquidity.
Current ETF holdings are 916,047 BTC, just shy of Satoshi Nakamoto's 1.1 million BTC stash.
Market sentiment is bullish as Bitcoin approaches significant liquidity levels.
Spot Bitcoin ETFs Surge
With the global liquidity proxy nearing the highs seen during the pandemic, bullish bets on Bitcoin are on the rise. The year-to-date inflows into spot Bitcoin ETFs have reached record levels, indicating a strong investor sentiment.
Source: MacroMicro
As highlighted in previous analyses, Bitcoin is highly sensitive to shifts in global liquidity. As of July 2024, the global liquidity proxy has turned positive and is rapidly climbing back to levels reminiscent of the liquidity surge during the pandemic.
Global Monetary Policies Impacting Bitcoin
Recent actions by the US Federal Reserve and the People's Bank of China have led to significant monetary easing, further boosting the global liquidity proxy. The Fed has cut its benchmark interest rate by 0.5%, while the PBOC has reduced banks' Required Reserve Ratio (RRR) and other rates, working together to enhance liquidity conditions.
Bitcoin's Correlation with Global M2 Supply
A recent study reveals that Bitcoin's price movements correlate with the global M2 supply 83% of the time, more than any other major asset. This positions Bitcoin as a powerful barometer of liquidity conditions in the market.
Spot Bitcoin ETFs Nearing Satoshi's Stash
As a testament to the growing interest in Bitcoin, the net inflows into US Bitcoin ETFs have reached an astounding $17.8 billion, bringing their total holdings to 916,047 BTC. This figure is just shy of Satoshi Nakamoto's legendary stash of 1.1 million BTC.
Market Sentiment
The current market landscape suggests a prevailing bullish sentiment towards Bitcoin as it approaches significant liquidity highs. With spot Bitcoin ETFs gaining traction, the dynamics of Bitcoin ownership are shifting, potentially leading to a new era in cryptocurrency investment.
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