Bitcoin Leads Crypto Inflows as Global Liquidity Hits $131.6 Trillion

• Global liquidity surged by $1.426 trillion this week, fueling Bitcoin’s rise and other risk assets.
• Solana outperformed Ethereum with $3.2 million inflows, signaling growing interest in alternative crypto assets.

In a tweet, on-chain analyst Ali Martinez showed a substantial spike in global liquidity, which surged by $1.426 trillion this week to an astounding $131.6 trillion. This increase in liquidity has had a good influence on Bitcoin and other risk assets, with Martinez speculating that the impacts may last into October.

The market’s reaction has been noticeable, raising the question of how this injection of liquidity will affect the future of cryptocurrencies, particularly Bitcoin.

Global liquidity surged by $1.426 trillion this week, hitting $131.6 trillion. #Bitcoin and other risk assets are gaining, though this liquidity boost could roll over into October. pic.twitter.com/PtFDjkR7wU

— Ali (@ali_charts) September 27, 2024

Rising Optimism as Liquidity Boosts Bitcoin Ahead of October 

One X user commented to Martinez’s tweet, underlining the possibility that this liquidity boost may continue to bolster Bitcoin and other risk assets as we approach October. Given the current momentum, this might lead to Bitcoin prices rising even further.

This feeling reflects growing optimism in the cryptocurrency community, as traders and investors watch how the liquidity injection affects the market in the coming weeks.

Furthermore, a prior CNF report noted more light on the current situation of the market, revealing that Bitcoin remains the leading source of capital inflow. Bitcoin saw an incredible $284 million influx, while Ethereum experienced an outflow, marking the fifth consecutive week of investor withdrawals.

Interestingly, Solana outperformed Ethereum, earning inflows of $3.2 million. This move indicates a growing interest in alternative cryptocurrency assets as investors look beyond the conventional market leaders.

On the other hand, as we previously highlighted, two dormant Bitcoin wallets that had been idle for 15 years suddenly reactivated, sending 100 BTC worth more than $6.24 million.

This surprising change has attracted interest and speculation among the crypto community, since such transfers frequently indicate broader market patterns or prospective shifts in investor sentiment.

Meanwhile, institutional investors are becoming more interested in Bitcoin ETFs, with financial institutions like BlackRock and Fidelity leading the way. This institutional adoption demonstrates Bitcoin’s rising maturity and recognition as a viable investment asset.

Meanwhile, as of writing, Bitcoin is trading at around $66,008.60, indicating a bullish performance over the last 30 days with a 11.46% growth.