Bitcoin Surges Past $104K Tied to Global M2 Growth; Institutional Inflows and Innovation Accelerate Crypto Bull Market
Bitcoin has recently surged above $104,000, fueled by a strong correlation with global M2 money supply growth—a relationship that has persisted with a 70-day lag since July 2024. Top analysts highlight that the expansion of global liquidity supports sustained upward momentum for Bitcoin, while robust institutional interest and growing adoption further reduce the likelihood of sharp corrections. This alignment suggests a potential start of a prolonged crypto bull market. Meanwhile, XRP continues to attract attention amid ongoing industry shifts. In addition, YZi Labs (formerly Binance Labs) launched a $500,000 accelerator to support Web3, AI, and healthcare startups, offering $150,000 for 5% equity plus $350,000 via an uncapped SAFE investment, along with housing and logistics. Applications for the accelerator close May 21, 2025. These developments reflect heightened investor optimism as traders look for new macroeconomic signals such as upcoming CPI data. Crypto traders should monitor institutional accumulation, regulatory changes, and Web3 innovation, as both macro liquidity trends and sector-specific initiatives could influence market sentiment and price direction.
Bullish
Bitcoin’s strong surge above $104,000, deeply correlated with global M2 money supply expansion and robust institutional inflow, signals heightened market confidence and reduced risk of severe downturns. The introduction of a sizable accelerator for Web3 startups by YZi Labs adds to innovation-driven optimism. Together, these factors indicate a bullish market outlook in both the short and long term, as increased institutional participation, positive macro liquidity trends, and sector innovation boost trader sentiment and support further upside momentum. However, traders remain attentive to macroeconomic data releases and potential sector-specific disruptions.