Bitcoin took a dive under $113,000 recently, sparking worries about a price peak. But one analyst thinks there’s still room for growth.
A Bullish Case for Bitcoin
CryptoQuant analyst Amr Taha sees positive signs despite the recent price drop. He points to two key factors:
Binance Volume Surge
Binance, the biggest crypto exchange, saw a massive spike in Bitcoin spot volume – over $7.6 billion in a single day. This happened right around the time Bitcoin’s price dipped from over $118,000 to around $113,000. Historically, such huge volume spikes have often preceded price rebounds, suggesting renewed investor interest.
Fed Liquidity Boost
The US Federal Reserve also injected a significant amount of liquidity into the market, increasing net liquidity from $6 trillion to $6.17 trillion. This extra cash in the system tends to flow into riskier assets like Bitcoin and stocks, historically leading to bullish market movements. We saw this happen in late 2023 and early 2024.
The Bottom Line
Taha believes the combination of increased Binance volume and the Fed’s liquidity injection could signal a bullish trend for Bitcoin. While the price is currently around $112,600 (down slightly), this could be a temporary setback before another price surge.
