Bitcoin Breaks Records and Hits a New All-Time High!

On Friday morning, Bitcoin reached a new all-time high, with its price shooting above $118,900 (€101,330). This sharp rise triggered a massive wave of short position liquidations, which totaled over a billion dollars in just one day. The market clearly showed an optimistic sentiment among investors, with the overnight increase of more than $5,000 surpassing even the most optimistic expectations.

Several factors are behind this growth – from the continued weakening of the dollar and easing geopolitical tensions to the growing institutional interest in Bitcoin as digital gold. A large number of companies have recently announced the creation of Bitcoin reserves to serve as long-term reserve assets.

Other cryptocurrencies also surged significantly, bringing the total crypto market capitalization close to its previous record. Ethereum, the second-largest crypto, broke the psychologically important $3,000 mark after more than five months and rose by nearly 7% in the last 24 hours. XRP increased by 6%, Solana by 4%, and Cardano by 11.5%.

Although Bitcoin has surpassed its previous USD high by more than $5,000, it has not yet broken its euro record due to the weakened U.S. dollar. While the USD price increased, the stronger euro has kept Bitcoin’s price in EUR below its all-time high of €105,980 from January 2025.

Short Liquidations Played a Key Role

According to CoinGlass, more than $1.1 billion in short positions were wiped out in 24 hours, with Bitcoin accounting for approximately $630 million and Ethereum for around $209 million. In total, 232,000 accounts were liquidated, proving that a large number of investors expected the price to drop.

Bitcoin effortlessly broke through the $112,000 resistance and surged to $118,400. This rapid price increase triggered a short squeeze — a situation where traders betting on a price drop are forced to buy back quickly to limit their losses. This panic buying, often combined with automatic exchange liquidations, created strong buying pressure that further fueled the price increase. In other words, those betting against Bitcoin became fuel for its next leg up.

Crypto market capitalization rose by more than 4% to $3.66 trillion. The market’s all-time high was in December 2024, around $3.7 trillion.

Overall, the wave of short liquidations confirms the strong bullish sentiment in the market — investors previously expected.

TAKE ADVANTAGE OF CRYPTO’S POTENTIAL

Is Bitcoin Tracking the M2 Money Supply?

At Fumbi, our analysts closely monitor all crypto market trends, including the relationship between Bitcoin and the M2 supply. We pointed out expect continued growth, and sentiment has shifted from uncertainty to greed.

In the graph below (blue line: M2 money supply / yellow line: BTC price in USD), you can clearly see that Bitcoin, with a slight lag, mirrors the direction of M2 — the total amount of money in circulation, including cash, bank accounts, and short-term deposits. After a sharp drop in M2 in Q1 2025, we saw a slowdown in the Bitcoin market. But once M2 began rising again, Bitcoin followed with a strong upward movement.

One of the most intriguing questions analysts ask is whether Bitcoin truly follows the growth of the money supply. Over the past year, there seems to be a much closer relationship between these two metrics than this trend back in May on our Twitter account, and the upward move in BTC confirmed it. In managing our Fumbi portfolios, we consider macroeconomic factors and broader trends to help clients stay on track and grow over time.

According to TradingView, BTC is currently trading around $118,000 — a new all-time high. Meanwhile, M2 has already reached new highs, suggesting that Bitcoin’s rally might not be over. If the correlation between money supply growth and BTC price continues, a new leg up may be just around the corner.

From a macroeconomic point of view, it makes sense — the more money in the system, the more people seek safe or profitable stores of value. And Bitcoin, as a digital asset with limited supply, naturally becomes one of the top choices — similar to gold.

It’s important to note, however, that this isn’t a direct causal relationship, but rather a long-term trend. Short-term fluctuations will always exist. But comparisons like this can help investors understand the broader context better.

Echoes of 2020?

Bitcoin is experiencing a year that in many ways resembles the legendary 2020 — not just in market sentiment but also in the numbers. Looking at BTC’s quarterly performance from CoinGlass reveals a striking parallel:

In 2020, Bitcoin started with a loss in Q1 (-10.83%), but then the trend reversed: Q2 +42.33%, Q3 +17.97%, and finally an explosion in Q4 with +168.02%. These quarters kicked off a new bull run that continued until the end of 2021.

In 2025, it looks quite similar. Let’s take a closer look:

• Q1 2025: -11.82% – slight decline and consolidation

• Q2 2025: +29.74% – significant increase and market awakening

• Q3 2025 is currently at +9.74%, and we’re just at the beginning of the quarter.

If history repeats itself, Q3 and Q4 could be the pivotal periods when Bitcoin enters a true bull market. Add the rising M2 supply, and we have a strong mix of factors that could push BTC prices much higher.

2020 showed us that bull runs don’t come from nowhere – they arise from monetary stimulus, tech adoption, and investor confidence. We’re seeing something similar now, with easing geopolitical tensions (e.g., Israel–Iran), trade deal progress, and expected interest rate cuts in the U.S.

Timing the Market Rarely Pays Off – Invest With Fumbi Today

Many investors try to buy low and sell high. But the truth is, it’s extremely hard to predict market movements — this often leads to missed opportunities and unnecessary stress.

Long-term, regular investing has proven to be a more reliable strategy, helping smooth out price swings and reduce timing risk. Even in crypto, those who invested consistently and calmly have seen better results than those who tried to time the market.

At Fumbi, we make investing in crypto simple, secure, and stress-free. Our portfolios are managed by a smart Fumbi Algorithm that adapts to market conditions. If you prefer individual assets, our Fumbi Custom product offers over 110 cryptocurrencies you can invest in within seconds.

Want to manage your investments like a pro? Use features like Take Profit, Stop Loss, and Buy Limit Orders in the “Investment Management” section of each product. These tools help you stay in control, without constantly watching the market.

Start investing today and build your future with ease and peace of mind.