Bitcoin Magazine

Why Liquidity Matters More Than Ever For Bitcoin Global liquidity has long been one of the cornerstone indicators used to assess macroeconomic conditions, and particularly when forecasting Bitcoin’s price trajectory. As liquidity increases, so does the capital available to flow into risk-on assets, such as Bitcoin. However, in this evolving market landscape, a more responsive and perhaps even more accurate metric has emerged, one that not only correlates highly with BTC price action but is also specific to the ecosystem. Global M2 Let’s begin with the Global M2 vs BTC chart. This has been one of the most shared and analyzed charts on Bitcoin Magazine Pro throughout the current bull cycle, and for good reason. The M2 supply encompasses all physical currency and near-money assets in an economy. When aggregated globally across major economies, it paints a clear picture of fiscal stimulus and central bank behavior. Figure 1: The Global M2 vs BTC chart has established itself as a key forecasting metric. View Live Chart Historically, major expansions in M2, especially those driven by money printing and fiscal interventions, have coincided with explosive Bitcoin rallies. The 2020 bull run was a textbook example. Trillions in stimulus flooded global economies, and Bitcoin surged from the low thousands to over $60,000. A similar pattern occurred in 2016-2017, and conversely, periods like 2018-2019 and 2022 saw M2 contraction aligning with BTC bear markets. A Stronger Correlation However, while the raw M2 chart is compelling, viewing Global M2 vs BTC Year-on-Year provides a more actionable view. Governments tend to always print money, so the base M2 supply nearly always trends upward. But the rate of acceleration or deceleration tells a different story. When the year-over-year growth rate of M2 is rising, Bitcoin tends to rally. When it’s falling or negative, Bitcoin typically struggles. This trend, despite short-term noise, highlights the deep connection between fiat liquidity expansion and Bitcoin’s bullishness. Figure 2: Switching to the Global M2 vs BTC YoY chart reveals a stronger correlation between these two metrics. View Live Chart But there’s a caveat: M2 data is slow. It takes time to collect, update, and reflect across economies. And the impact of increased liquidity doesn’t hit Bitcoin immediately. Initially, new liquidity flows into safer assets like bonds and gold, then equities, and only later into higher volatility, speculative assets like BTC. This lag is crucial for timing strategies. We can add a delay onto this data, but the point remains. Stablecoins To address this latency, we pivot to a more timely and crypto-native metric: stablecoin liquidity. Comparing BTC to the supply of major stablecoins (USDT, USDC, DAI, etc.) reveals an even stronger correlation than with M2. Figure 3: Historically, changes in stablecoin liquidity have coincided with Bitcoin cycles. Now, just tracking the raw value of stablecoin supply offers some value, but to truly gain an edge, we examine the rate of change, particularly over a 28-day (monthly) rolling basis. This change in supply is highly indicative of short-term liquidity trends. When the rate turns positive, it often marks the beginning of new BTC accumulation phases. When it turns sharply negative, it aligns with local tops and retracements. Figure 4: Plotting the stablecoin supply rate of change shows how liquidity trends tightly align with BTC price action. Looking back at the tail end of 2024, as stablecoin growth spiked, BTC surged from prolonged consolidation into new highs. Similarly, the major 30% drawdown earlier this year was preceded by a steep negative turn in stablecoin supply growth. These moves were tracked to the day by this metric. Even more recent rebounds in stablecoin supply are starting to show early signs of a potential bounce in BTC price, suggesting renewed inflows into the crypto markets. Figure 5: In the past, the indicator triggered by the liquidity rate crossing above zero has been a reliable buy signal. The value of this data isn’t new. Crypto veterans will remember Tether Printer accounts on Twitter dating back to 2017, watching every USDT mint as a signal for Bitcoin pumps. The difference now is we can measure this more precisely, in real-time, and with the added nuance of rate-of-change analysis. What makes this even more powerful is the intracycle and even intraday tracking capabilities. Unlike the Global M2 chart, which updates infrequently, stablecoin liquidity data can be tracked live and used on short timeframes, and when tracking for positive shifts in this change, it can provide great accumulation opportunities. Conclusion While Global M2 growth aligns with long-term Bitcoin trends, the stablecoin rate-of-change metric provides clarity for intra-cycle positioning. It deserves a spot in every analyst’s toolkit. Using a simple strategy, such as looking for crossovers above zero in the 28-day rate of change for accumulation, and considering scaling out when extreme spikes occur, has worked remarkably well and will likely continue to do so. Loved this deep dive into bitcoin price dynamics? Subscribe to Bitcoin Magazine Pro on YouTube for more expert market insights and analysis! Click Here To Subscribe To YouTube Channel For more deep-dive research, technical indicators, real-time market alerts, and access to expert analysis, visit BitcoinMagazinePro.com. Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions. This post Why Liquidity Matters More Than Ever For Bitcoin first appeared on Bitcoin Magazine and is written by Matt Crosby.

The long-standing and controversial question of whether Ripple payments could one day replace the Society for Worldwide Interbank Financial Telecommunication (SWIFT) is gaining renewed attention in the crypto market. A prominent XRP analyst has highlighted a significant shift in the Ripple payment infrastructure that could represent a potential turning point in the crypto company’s bid to challenge SWIFT’s decades-long dominance in global cross-border settlements.  XRP Analyst Unveils Ripple’s Latest Moves In his latest X social media thread, crypto market analyst Pumpius explains how Ripple could eventually supersede SWIFT as a cross-border payment infrastructure and settlement layer for banks. The analyst highlights recent developments that continue to fuel Ripple’s growth and position it as a prime candidate for transforming global financial messaging.  According to Pumpius’s report, Ripple has taken a significant step forward in its bid to transform the global financial system, as recent developments show deepening infrastructure integration. The XRP analyst disclosed that Ripple payments have officially integrated with EUR and GBP International Bank Account Numbers (IBANs), marking a critical evolution in its offering. This suggests that Ripple is no longer just processing payments, but enabling institutional-grade banking functionality within its ecosystem. Through partnerships with OpenPayd, Ripple is granting financial institutions access to programmable dollar liquidity. OpenPayd clients can now mint and burn the Ripple on-chain stablecoin, RLUSD, in real-time. The XRP analyst has called this new development a faster and potentially more efficient programmable USD liquidity on demand. He highlights that this capability also unlocks automated FX, compliance solutions, and seamless cross-border fund movement.  Pumpius describes Ripple’s latest developments as a game-changing moment for blockchain-based finance. Rather than acting as a parallel system, the crypto company is now positioning itself as a new banking layer, built entirely outside the legacy infrastructure, but fully equipped to serve its institutional clientele.   How Ripple Could Replace SWIFT’s Legacy Pumpius’s X report suggests that Ripple’s evolution isn’t limited to just speed or low-cost payments. The core technology behind XRP and Ripple’s APIs aims to replace key functions of the SWIFT network, which currently facilitates interbank financial messaging and settlements globally.  The analyst notes that Ripple’s model delivers what SWIFT does not, including real-time foreign exchange, end-to-end automated banking APIs, instant stablecoin-to-fiat conversion, and settlements via XRP. What makes the potential transition from SWIFT to Ripple even more tangible is the live infrastructure now running behind the crypto payment company’s system.  According to Pumpius, liquidity corridors are no longer theoretical for Ripple, but operational. The company’s stablecoin rails are also highly active, while XRP has evolved from its status as a speculative asset into being used for final settlements in real financial flows. Overall, the integration of IBANs and the launch of RLUSD make Ripple a direct competitor to SWIFT. And as the analyst notes, these developments are more than incremental signs of growth—they mark a potential turning point in Ripple’s goal to replace SWIFT.

The Ethereum price is flashing major upside signals as on-chain and market activity align toward a potential breakout to the $3,000 level. With crypto exchange balances falling to their lowest in nine years, stablecoin rails hitting record highs, and Spot Ethereum ETF inflows spiking last month, analysts now describe ETH as a “powder keg” primed for explosive movement.   Ethereum Price Eyes A $3,300 Breakout  The Ethereum price action is drawing attention as it continues to trade within a well-defined consolidation range, hovering near $2,555 at the time of writing. Based on a recently released technical analysis by crypto analyst Pentoshi on X social media, ETH could be on the verge of a significant move, with $3,300 marked as the next bullish target in the near term.  The crypto expert’s chart reveals that since early May 2025, Ethereum has been locked between two key levels—a support zone around $2,190 and resistance near $2,750. This range has remained intact for over eight weeks, signaling a period of accumulation and low volatility after the sharp decline experienced in the first quarter of the year.  Pentoshi has pinpointed $2,100 as the key downside risk in his bullish outlook, aligning closely with the lower support zone marked on the chart. While the next bullish extension and major resistance level has been identified as $3,300, the analyst expects Ethereum to make a move toward this price level within the next three months. He suggests that the current setup offers a favorable risk-reward profile, estimating a potential upside of roughly 3.2x compared to the downside risk.  Analyst Calls Ethereum A “Powder Keg” In other news, Eric Conner refers to Ethereum as a “powder keg,” highlighting a growing convergence of fundamental factors that are building up pressure and positioning the cryptocurrency for a potentially parabolic move in the market.  The analyst reports that Stablecoin activity on Ethereum has reached historic highs, with the total market capitalization of on-chain dollar-denominated assets hitting $251 billion—a record that also marks 21 consecutive months of uninterrupted growth. In parallel, Ethereum Spot ETFs have brought in $1.17 billion in net inflows during June alone, marking a major shift in investors’ appetite for ETH exposure.  Even more notable, the amount of Ethereum available for trading is now at its lowest level in nearly a decade, with only nine million ETH tokens on centralized crypto exchanges. This nine-year low in exchange balances signals a drying float, where any fresh demand has an outsized impact on price.  Conner has stated that large-scale crypto investors are beginning to take note. He reports that wallets holding between 1,000 and 10,000 ETH have accumulated more than 800,000 tokens daily during the peak week in June, marking the most aggressive absorption by whales since 2017.  Currently, price action mirrors tension, and the analyst warns that if Ethereum decisively clears the $2,600 resistance level, the combination of supply scarcity, ETF-driven demand, and explosive stablecoin usage could unleash a violent and rapid breakout.

• RLUSD’s 24-hour volume hit $60M after AMINA Bank support, signaling a strong institutional interest.
• Ripple’s bank charter and Fed access plans align with stablecoin regulation shifts ahead of the GENIUS Act.

Chinese tech giants are urging the central bank to grant them permission to issue yuan-backed stablecoins in a bid to challenge the growing dominance of dollar-based stablecoins. Countering Dollarization of the Digital Economy Chinese tech giants JD.com and Ant Group are reportedly urging the central bank to permit them to issue yuan-backed stablecoins to counter […]

Rostec announced that it will promote this stablecoin and an associated payment platform as a secure method for conducting transactions, approved by the Russian Central Bank. The payment system will integrate with the Russian banking infrastructure, while the stablecoin will be launched on the Tron blockchain. Russian Defense Company Rostec to Leverage Ruble Stablecoin to […]

Ripple USD gains major momentum as Amina Bank becomes the first global bank to support RLUSD, signaling a breakthrough moment for regulated digital asset adoption worldwide. Amina Debuts First Bank Support for Ripple’s RLUSD A regulated gateway to stablecoin exposure is rapidly evolving as institutions seek compliant digital assets to bridge traditional finance and crypto […]

New York Attorney General Letitia James is warning that dangerously flawed stablecoin bills could expose U.S. financial markets to chaos by lacking critical guardrails and enforcement. Weak Stablecoin Bills Risk Undermining US Financial Stability, James Warns New York Attorney General Letitia James has raised concerns that proposed federal legislation on stablecoins lacks the safeguards needed […]

It’s safe to say that the surge in stablecoin adoption has not gone unnoticed by the banks. Several of the largest banks in the US are reportedly in early talks to launch a joint stablecoin, aiming to challenge the popularity of crypto and digital payment solutions.  “The conversations have so far involved companies co-owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and other large commercial banks, according to people familiar with the matter,” confirmed the Wall Street Journal in a 22 May 2025 report. The project is in its conceptual phase and hinges on evolving regulatory frameworks, particularly the new stablecoin legislation. The consortium would involve Early Warning Services and The Clearing House, both pivotal players in the US payments infrastructure.  WALL STREET STABLECOIN? JPMorgan, BofA, Wells Fargo, and Citi are exploring a joint crypto stablecoin. But if banks control the network… how is this NOT a CBDC? Decentralization on the line.#stablecoin #RLUSD #usdt pic.twitter.com/t7EbYjHjbx — AltcoinPro (@AltcoinPro_) May 23, 2025 Explore: The 12+ Hottest Crypto Presales to Buy Right Now Wall Street Stablecoin in the Making? Big banks are teaming up to create a joint stablecoin. Because nothing says "we understand crypto" like a committee of suits trying to reinvent the wheel. Stay tuned for the launch of "BankCoin"—coming soon to a bureaucracy near you. pic.twitter.com/djjxdbaGSw — Surge (@WeSurgeNow) May 23, 2025 In recent years, stablecoins have become a preferred vehicle for fast, low-cost transfers, especially in cross-border settings where traditional banking systems can be cumbersome.  As crypto-native firms and even big tech companies eye the stablecoin market, US banks are increasingly concerned about losing deposits and transaction volume to the new digital challengers. Hence, a Wall Street stablecoin could be in the making! Furthermore, the potential for stablecoins to serve as “digital dollars” threatens the core business of banks, prompting them to consider launching their own alternative.  DISCOVER: Best New Cryptocurrencies to Invest in 2025 – Top New Crypto Coins GENIUS Act Advances With 66 Votes The US Senate has advanced the GENIUS Act, a bipartisan bill regulating stablecoins. The legislation passed a procedural vote with 66 in favor and 32 against, signaling strong momentum for regulatory clarity. The bill aims to set clear guidelines for stablecoin issuers, including 1:1 asset backing, anti-money laundering compliance, and consumer protections. It could help reduce systemic risk and promote more mainstream adoption of crypto-based payment systems if enacted. However, the bill has also drawn scrutiny, particularly concerning US President Donald Trump’s growing ties to crypto. Some critics argue that these ties may introduce potential conflicts of interest, especially if policies are shaped to benefit affiliated ventures. Still, for market participants, the advancement of the GENIUS Act is largely seen as a step toward legitimacy for digital assets and stablecoins in particular. With Bitcoin nearing its all-time high and institutional interest returning, the regulatory structure may help sustain momentum. Explore: TRUMP Meme Coin Pumps Amid GENIUS Act: New Presale to Buy Key Takeaways