Bitcoin has rebounded 8% from its March 11 low of $76,703, propelled by aggressive accumulation from institutional investors leveraging margin positions. Despite recent volatility, whales on Bitfinex have added 13,787 BTC over the past 17 days, pushing the platform’s total margin long positions to $5.7 billion, the highest since November 2024.
This influx of leveraged buying reveals a growing confidence in Bitcoin’s upside potential. Large investors appear to be positioning themselves for a sustained rally beyond $105,000, driven by favorable macroeconomic conditions and expanding liquidity across financial markets.
Bitcoin’s Correlation With Liquidity Expansion
Analysts point to Bitcoin’s historical correlation with the global monetary base, emphasizing that central bank liquidity injections often precede bullish cycles in the cryptocurrency market. With recession risks mounting, policymakers may be forced to reintroduce monetary easing measures, increasing the money supply to stabilize economies.
Crypto market observers argue that such expansionary policies act as tailwinds for Bitcoin, as investors seek alternative assets that hold value amid rising inflation and currency devaluation. According to market analysts, Bitcoin has shown an 82% correlation with M2 money supply trends, suggesting that an increase in liquidity could push BTC well above $105K in the coming months.
Conversely, when central banks tighten monetary policies—through interest rate hikes or reductions in bond holdings—risk assets like Bitcoin tend to experience temporary downturns. However, with global economies signaling a shift back toward accommodative policies, Bitcoin’s long-term trajectory appears increasingly bullish.
This combination of institutional accumulation, macroeconomic trends, and central bank liquidity movements sets the stage for Bitcoin’s next major move, potentially driving it back into six-figure territory.
Whales and Institutions Double Down as Bitcoin Eyes New Surge
A similar pattern was observed in September 2024, when traders on Bitfinex added 7,840 BTC in long positions while Bitcoin struggled around $50,000 for over three months. Despite a prevailing bearish sentiment, these whales held firm, and less than two months later, Bitcoin skyrocketed beyond $75,000.
This accumulation trend appears to be aligning once again with the bottoming out of the global M2 money supply, reinforcing the correlation between Bitcoin’s price action and global liquidity movements. While this connection remains speculative, historical data suggests that institutional and whale accumulation often front-runs major Bitcoin price expansions.
Institutional Power Plays Fueling Bitcoin’s Rally
Beyond margin traders, major institutions and corporations continue to load up on Bitcoin. Strategy, the largest corporate holder of BTC, has unveiled plans to raise up to $21 billion to acquire more Bitcoin, further tightening supply. The company already holds 499,096 BTC at an acquisition cost of $33.1 billion, signaling long-term conviction in Bitcoin’s value as a treasury asset.
Bitcoin’s ongoing rally is also benefiting from political developments, particularly Donald Trump’s return to the White House in January 2024. His administration’s pro-crypto stance has fueled investor optimism, reinforcing that regulatory clarity will support broader institutional adoption.
The recent agreement by Ukraine to a 30-day ceasefire has introduced a sense of geopolitical stability, positively influencing global markets. Historically, Bitcoin has been sensitive to geopolitical tensions, often as a hedge against uncertainty. The ceasefire reduces immediate geopolitical risks, encouraging investors to re-enter markets, including cryptocurrencies, thereby boosting Bitcoin’s liquidity and price.
With these factors at play—including increasing liquidity, institutional accumulation, and a favorable regulatory environment—Bitcoin’s path to $105,000 by May 2025 appears increasingly probable. Some analysts even suggest that, under the right conditions, BTC could surpass these expectations and enter a new phase of price discovery beyond six figures.
Quick Facts:
- Bitcoin has surged 8% from its March 11 low of $76,703, fueled by aggressive accumulation from institutional investors using leveraged positions.
- Bitfinex whales have added 13,787 BTC in margin longs, bringing total leveraged positions to $5.7 billion, the highest since November 2024.
- Bitcoin has historically shown an 82% correlation with global M2 money supply trends, suggesting that expansionary monetary policies could propel BTC above $105K in the coming months.
