Bitcoin Begins New Distribution Phase Alongside Surging Global Liquidity
Overview
Recently, Bitcoin has entered a new distribution phase, exceeding the significant mark of 107,000. This transformation aligns with a considerable boost in global liquidity, highlighted by a marked increase in the M2 money supply since June. Such a change indicates a departure from earlier accumulation and manipulation phases, pushing the market towards a trend influenced by broader liquidity dynamics.
Expert Insights
Crypto Patel, a prominent cryptocurrency analyst, pointed out the importance of the current liquidity scenario, asserting, “Global liquidity is EXPLODING,” and characterized the market as being in a phase of “distribution phase loading.” His commentary emphasizes the connection between the expansion of liquidity and the behavior of Bitcoin in the marketplace.
Market Landscape
Bitcoin has broken free from a prolonged price range and entered a distribution phase as global M2 liquidity hits unprecedented levels in 2025. A comparative examination of Bitcoin’s price shifts against the M2 global money supply suggests that liquidity has emerged as the key market influencer, supported by a chart shared on June 28, 2025, illustrating these relationships.
Historically, Bitcoin has experienced distinct stages: accumulation, manipulation, and now, distribution. From November to February, Bitcoin was trading within the 108,000–110,000 range as M2 gradually increased, demonstrating a strong correlation during the accumulation phase. However, in March, the market faced volatility as Bitcoin’s price exhibited erratic fluctuations, which seemed detached from liquidity trends—a situation categorized as manipulation.
Impact Overview
The recent spike in M2, which rose from 106,000 to over 128,000 during this cycle, closely mirrors Bitcoin’s ascent from 107,000 to above 132,000. This suggests that the ongoing distribution phase is fundamentally driven by liquidity, indicating that the increase in supply might be encouraging a greater risk appetite among investors.
Nonetheless, trading during distribution phases tends to result in increased volatility or abrupt directional changes. The current upward momentum in Bitcoin’s price could potentially diminish if liquidity support recedes or if there are no fundamental catalysts to maintain investor interest. Traders are keenly observing the M2 chart, considering it a vital predictor for upcoming price shifts. A new microstructure has emerged in the chart, reminiscent of previous cycles of accumulation-manipulation-distribution, suggesting that Bitcoin may follow historical patterns depending on M2 developments.
Final Thoughts
Bitcoin’s transition into a distribution phase marks a crucial turning point in market dynamics, driven by an increase in global liquidity. The close relationship between Bitcoin’s price movements and M2 growth reinforces the idea that liquidity acts as a central force in the cryptocurrency market. As traders navigate this evolving landscape, closely tracking M2 will be essential for anticipating potential price movements and the overall direction of Bitcoin. Understanding the implications of these liquidity trends will be vital for participants in the cryptocurrency market as they seek to predict future volatility and opportunities.
