Bitcoin is back in the spotlight, and current economic indicators suggest a possibility of reaching a price level of $200,000. The rise in M2 money supply and demand signals for Bitcoin provide grounds for optimism.
M2 Growth and Profit Signals
The M2 money supply is rising again, which could lead to increased demand for Bitcoin. Data shows M2 is surpassing $112 trillion, which analysts suggest may push BTC towards $200,000 by September. This growth coincides with what was seen in early 2024 when Bitcoin was also on the rise.
Bitcoin holders are also showing confidence: the Spent Output Profit Ratio (SOPR) is above 1, indicating that most BTC moved on-chain is being sold at a profit.
Traders are Betting on Price Increases
Futures data also supports this optimism. Bitcoin open interest has exceeded $84.2 billion, indicating that traders are making large bets on price increases. Positive funding rates indicate that more traders are betting on upward movements than downward ones. Current open interest shows sustained interest in Bitcoin from traders.
Stablecoin Reserves and Bitcoin Price Outlook
On the spot market, bullish signals are also emerging: total stablecoin reserves on exchanges remain around $47 billion. High reserves often indicate investors are ready to purchase crypto when prices dip. Additionally, recent outflows of Bitcoin from exchanges suggest holders prefer to store the asset for the long term, reducing sell pressure. Fibonacci analysis indicates that the next target for Bitcoin may be near $200,000.
Current economic indicators, including rising M2 money supply and active futures markets, create a positive outlook for Bitcoin. If liquidity continues to grow and traders maintain confidence, the $200,000 target could become a reality in the coming months.
