Bitcoin has recently experienced a significant price surge, reaching an all-time high of $111,000, as global liquidity continues to expand and market volatility intensifies. This rally comes amid a series of notable events in the crypto world, including a major donation to Ross Ulbricht and high-profile trading liquidations, highlighting the dynamic interplay between digital assets and macroeconomic trends.
Bitcoin’s Price Mirrors Global Money Supply
Over the past 21 months, Bitcoin’s price has closely tracked the global M2 money supply—a broad measure of liquidity in the financial system—with a consistent lag of about 10 weeks. From September 2023, when Bitcoin traded at $26,000, to June 2025, when it peaked above $111,000, the global M2 index rose from 40,000 to 150,000 units. This strong correlation suggests that Bitcoin’s value is increasingly sensitive to shifts in global liquidity, making it a potential indicator for investors watching monetary trends.
Between December 2023 and September 2024, the alignment between Bitcoin and M2 was especially pronounced. During this period, Bitcoin climbed from $42,000 to $65,000, while M2 increased from 50,000 to 90,000 units. This parallel movement underscores how expanding liquidity can drive digital asset prices higher.
Source: Mikybull Crypto
Market Volatility and Major Moves
The recent market rally has not been without turbulence. As Bitcoin soared, the market saw heightened volatility, leading to significant liquidations. Notably, trader James Wynn faced liquidations totaling $65.6 million, including 520 BTC and nearly a billion kPEPE tokens, resulting in a realized loss of $17.76 million. Such events reflect the risks and rapid shifts that can occur in crypto markets during periods of high volatility.
Ross Ulbricht’s $31 Million Bitcoin Donation
Amid these market developments, Ross Ulbricht, the founder of the Silk Road marketplace, received a remarkable donation of 300 BTC—valued at over $31 million—shortly after his release from prison and public appearance at the Bitcoin 2025 conference . The donation, flagged by blockchain analytics platforms, has sparked renewed interest in Ulbricht’s story and the ongoing support from the crypto community. Since his release, Ulbricht has received multiple donations, including a notable contribution from the exchange Kraken and other supporters, helping him transition back into society .
Divergence and Renewed Momentum
While Bitcoin’s price generally follows global liquidity trends, a brief divergence occurred in late 2024 when Bitcoin surged past $100,000 even as M2 plateaued. This suggests that investor sentiment and capital inflows can sometimes drive prices beyond what liquidity alone would predict. As M2 growth resumed in 2025, Bitcoin continued its upward trajectory, maintaining its correlation with global liquidity but with increased volatility.
What This Means for Crypto Investors
The ongoing relationship between Bitcoin and global liquidity highlights the importance of macroeconomic factors in digital asset markets. For traders and investors, monitoring global money supply trends could offer valuable insights into potential Bitcoin price movements, especially given the observed 10-week lag. However, the recent volatility and high-profile liquidations also serve as a reminder of the risks inherent in crypto trading.
