Despite global economic uncertainty, Bitcoin has maintained relative stability, trading around $83,000. The cryptocurrency market initially reacted negatively to Trump’s tariff announcement, with Bitcoin experiencing a 3.4% drop before stabilizing. Analysts suggest Bitcoin’s resilience is linked to the global M2 money supply, which hit a record $108.4 trillion, signaling increased liquidity.
Bitcoin’s price movement reflects broader macroeconomic trends. While the Dow Jones and S&P 500 saw sharp declines following the tariff announcement, Bitcoin demonstrated relative strength, stabilizing above $82,000. Some analysts believe this signals institutional accumulation, as investors seek refuge from traditional financial markets.
Technical Indicators and Investor Sentiment
Bitcoin’s Net Unrealized Profit and Loss (NUPL) reached an 8-month high, indicating potential capitulation among short-term holders. Historically, such spikes in NUPL have preceded market bottoms, suggesting that selling pressure may be easing. However, on-chain data shows that 330,850 BTC were purchased between $78,951 and $81,884, meaning a drop below $79,000 could trigger further liquidations.
The global M2 money supply has surged to $108.4 trillion, reflecting increased liquidity across major economies. This expansion in money supply has historically correlated with Bitcoin price appreciation, as excess liquidity often flows into alternative assets. Analysts argue that Bitcoin’s scarcity and decentralized nature make it an attractive hedge against inflation and economic instability.
While some investors fear further declines, others see Bitcoin as a safe-haven asset, predicting a rebound above $91,000 if market conditions improve. If Bitcoin maintains support above $82,000, analysts suggest a potential rally toward $100,000 in the coming months.
Shogun Lin
