Bitcoin (BTC) has roared back above $109,000, reigniting bullish momentum and drawing strong support from both on-chain metrics and technical indicators. The digital asset climbed 3.6% to reach $109,730 — its highest level since June 12 — amid a broader macroeconomic environment marked by record global money supply growth.
With the world’s M2 money supply surpassing $55 trillion for the first time, investors are increasingly turning to Bitcoin as a hedge against monetary expansion. This macro backdrop, combined with rising demand signals across derivatives and spot markets, suggests a structural shift in market dynamics.
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Market Structure Shift: Rising Open Interest With Controlled Leverage
One of the most telling signs of sustainable momentum is the surge in Bitcoin futures open interest (OI), which jumped over 10% — approximately $3.2 billion — during the recent price climb from $105,200 to $109,500. Unlike previous rallies driven by speculative leverage, this increase occurred alongside stable funding rates across major perpetual exchanges.
This balance indicates that the rally is not fueled by excessive long-side borrowing but rather by broad-based buying pressure. A rising OI with neutral funding rates typically reflects healthy market participation, where new capital enters without distorting risk appetites.
Notably, over $196 million in short positions were liquidated within just 12 hours, accelerating the breakout through key resistance levels. These cascading liquidations often act as catalysts, pushing prices higher as algorithms and stop-loss triggers activate.
Spot Demand Strengthens: Coinbase Premium Signals Institutional Buying
Beyond derivatives, spot market dynamics are also flashing bullish signals. The Coinbase premium index — which tracks the price difference between Coinbase and other major exchanges — has steadily increased during this rally.
A widening premium on Coinbase often points to strong demand from U.S.-based institutional and retail investors who rely on the platform for regulated access to Bitcoin. This growing disparity suggests that domestic capital inflows are playing a pivotal role in driving price action, reinforcing the narrative of Bitcoin as a macro-resilient asset.
When spot demand leads the charge, it tends to produce more durable uptrends compared to rallies driven purely by futures speculation. The current alignment of robust spot buying and measured derivative activity paints a picture of maturing market infrastructure and investor behavior.
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Technical Indicators Point to Major Breakout
From a technical perspective, Bitcoin appears poised for a significant move higher. If BTC closes the day above $108,500, it would form a bullish engulfing pattern — a powerful reversal signal that often precedes strong upward momentum.
Analyst Rekt Capital highlights that a weekly close above $109,300 could break through the final major resistance zone, unlocking what he calls a “price discovery” phase. Historically, such phases occur when institutional adoption accelerates and traditional valuation models fail to keep pace with demand.
Another key observation comes from trader Jackis, who notes that Bitcoin’s volatility has dropped to its lowest level since 2023 — an event that has only occurred seven times in the past decade. In every prior instance, a period of low volatility was followed by a sharp price movement within five weeks, typically to the upside.
Titan of Crypto adds that the daily MACD has generated a clear bullish crossover — a momentum confirmation signal watched closely by technical traders. Additionally, BTC is attempting to break out of a long-term bullish flag pattern. A confirmed breakout could trigger a “magnetic effect,” pulling price toward the $137,000 target zone.
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Frequently Asked Questions (FAQ)
Q: What does rising open interest mean for Bitcoin’s price?
A: Increasing open interest during a price rise suggests new money is entering the market, indicating strong conviction. When paired with stable funding rates, it signals sustainable momentum rather than speculative excess.
Q: Why is the Coinbase premium important?
A: The Coinbase premium reflects demand pressure from U.S. investors using a regulated exchange. A rising premium often precedes broader market rallies, as it shows institutional and retail buyers are actively accumulating.
Q: Can Bitcoin really reach $137,000?
A: While no price target is guaranteed, technical patterns like the bullish flag and MACD crossover support upside potential. Historical volatility cycles also suggest a major move is likely within weeks.
Q: Is this rally different from past ones?
A: Yes. Unlike previous rallies driven by retail speculation and high leverage, this move shows stronger spot demand and balanced derivatives activity — signs of a more mature and resilient market structure.
Q: What triggers a bullish engulfing pattern?
A: A bullish engulfing occurs when a large green candle completely covers the previous red candle on a daily chart. It signals strong buying pressure and often marks the start of an uptrend if confirmed by volume and momentum.
Q: How does global money supply affect Bitcoin?
A: As central banks expand M2 supply, investors seek assets that cannot be devalued through printing. Bitcoin’s fixed supply of 21 million makes it an attractive hedge against inflation and currency debasement.
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Conclusion
Bitcoin’s resurgence above $109,000 is more than just another price spike — it reflects a deepening structural shift in how capital flows into the asset class. With record global liquidity, strengthening spot demand, controlled leverage in derivatives, and compelling technical setups, the path toward new all-time highs appears increasingly clear.
As volatility begins to expand from multi-year lows and key resistance levels break, market participants should prepare for accelerated price discovery. Whether targeting $137,000 or beyond, the coming weeks could define the next chapter in Bitcoin’s evolution as both an investment vehicle and a global monetary asset.