Bitcoin’s recent surge to new price highs has captured the attention of investors worldwide. As of May 22, Bitcoin achieved an impressive $111,860 on Binance, marking a significant milestone in the cryptocurrency’s journey. However, despite this achievement, analysts point out a notable absence of the typical euphoric sentiment that usually accompanies such highs.
Key Takeaways:
- Bitcoin’s rally occurred amidst subdued funding rates and cautious trading sentiment.
- An increase in stablecoin supply and global M2 growth highlights untapped liquidity, suggesting potential for further price movement.
- Long-term holders appear confident, as evidenced by their reluctance to sell at current prices.
Economist and crypto commentator Alex Krüger remarked that this latest peak marks “the least euphoric new all-time highs” for Bitcoin. This sentiment is echoed by the low funding rates observed across crypto exchanges, which are notably lower than the highs seen in the preceding quarters.
The relatively low funding rates indicate a lack of speculative activity in the futures market. Instead, the current rally has primarily been fueled by spot buyers rather than leveraged traders. This dynamic significantly reduces the risk of corrections driven by over-leveraging and suggests Bitcoin has not yet reached a state of general market euphoria.
A closer look at the market reveals a wealth of untapped liquidity within the crypto ecosystem. The growth of stablecoin market capitalization serves as a promising indicator for incoming capital. Recent data from 2025 shows a healthy rise in stablecoin supply, with Tether’s (USDT) market cap growing from $139 billion to $152 billion, and Circle’s USDC supply climbing by 35% to $58 billion.
This influx of stablecoins positions the market for additional growth potential, as they act as a conduit for new investment into Bitcoin and other cryptocurrency assets. Moreover, the global M2 money supply’s rise, which tracks the overall money available across major economies, has also grown by 5% in Q1 of 2025.
Previous analyses have indicated a strong correlation, exceeding 80%, between Bitcoin’s price and global liquidity trends, typically with a 60-day lag. This points to substantial buying pressure in the period to come.
“Muted” Profit-Taking Reflects Confidence in Bitcoin
Data from Glassnode provides further analysis on the prevailing market dynamics. Notably, even at these new price heights, profit-taking among Bitcoin holders has remained relatively restrained, with only $1.00 billion taken as profit compared to over $2.10 billion realized when Bitcoin first crossed the $100K threshold back in December.
When $BTC hit all-time high yesterday, total profit-taking volume was around $1.00B – less than half the amount realized when #BTC first crossed $100K last December, which hit $2.10B. Despite a higher price, profit realization was far more muted.
This trend suggests that long-term holders are not eager to sell, reflecting confidence in further potential appreciation of Bitcoin’s price. This overall lack of overwhelming participation underscores that Bitcoin’s current rally does not represent a crowded trade, thus leaving space for new capital to enter the market.
The combination of restrained profit-taking and low speculative activity indicates that the market remains far from overheating or entering a state of euphoria. These factors collectively paint a picture of a cryptocurrency market that is still evolving, with significant potential for future growth.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
