Bitcoin Analyst Builds BTC’s Bullish Case After Binance Volume Spike, Fed Liquidity Surge

2 weeks ago

The terms of Bitcoin started the weekend—and the caller month—in the worst imaginable mode aft falling beneath the $115,000 people connected Friday, August 1. This terms diminution seems to beryllium worsening, arsenic the premier cryptocurrency present sits beneath the $113,000 level pursuing United States President Donald Trump’s caller atomic threat.

This caller question has sparked market-wide conversations astir the anticipation of Bitcoin already reaching the terms apical successful the existent cycle. However, the statement seems to beryllium that the terms of BTC inactive has the imaginable to embark connected astatine slightest different limb up earlier yet reaching its rhythm peak.

BTC Could Revisit Former Highs In Near Term: Analyst

In a Quicktake post connected the CryptoQuant platform, on-chain expert Amr Taha built a bullish lawsuit for the terms of Bitcoin pursuing caller shifts successful the Bitcoin marketplace and the broader macro dynamics. In the BTC marketplace context, the crypto pundit highlighted the changes successful the coin’s spot measurement connected Binance, the world’s largest cryptocurrency speech by trading volume.

Data from CryptoQuant shows that Binance registered implicit $7.6 cardinal regular BTC spot volume, marking 1 of the astir important increases successful caller weeks. However, this notable spike successful trading enactment coincided with a dip successful Bitcoin’s terms from supra $118,000 to astir $113,000, signaling accrued volatility and trader repositioning.

Taha noted that, from a humanities perspective, spot measurement spikes of this magnitude—like the $7 cardinal surge seen connected June 22—have often been correlated with section bottoms oregon large terms reversals. Hence, the latest leap successful the Bitcoin spot measurement could correspond renewed capitalist demand and beryllium yet bullish for the marketplace leader.

In the macroeconomic context, Taha highlighted that the US Federal Reserve’s nett liquidity besides witnessed a important summation connected Friday, jumping from $6 trillion to $6.17 trillion. For much context, nett liquidity is typically considered a important macro operator for hazard assets similar Bitcoin.

As such, a nett liquidity spike implies much fiat wealth is circulating successful the fiscal system, which tin travel into equities, cryptocurrencies, and different risk-on assets. Hence, increases successful the Fed’s nett liquidity person historically coincided with bullish shifts crossed markets, arsenic seen during precocious 2023 and aboriginal 2024.

Ultimately, Taha concluded that the operation of the emergence successful Bitcoin spot measurement connected Binance and the Fed’s nett liquidity could acceptable the stage for bullish continuation for the flagship cryptocurrency.