The cryptocurrency market has entered another phase of exuberant ascension, with Bitcoin shattering the psychologically significant $100,000 barrier for the first time since February 2025, while Ethereum follows suit in what analysts are characterizing as a liquidity-driven rally. Bitcoin’s resurgence—touching peaks around $104,000 in early May—represents a formidable 40% recovery from April’s doldrums and positions the asset tantalizingly close to its January zenith of $109,000.
This price action coincides with the oft-overlooked yet remarkably predictive indicator of global M2 money supply expansion, which commenced an upward trajectory in February 2025. The lagged correlation (approximately 90 days) between liquidity infusions and Bitcoin’s subsequent price movements continues to validate the thesis that cryptocurrencies—particularly Bitcoin—function less as tech equity proxies and more as barometers of global monetary conditions.
Cryptocurrencies reveal their true nature: not tech stocks in disguise, but pulse-takers of the global monetary heartbeat.
Market sentiment has crystallized into decidedly bullish territory, buoyed by ameliorating international trade relations and diminishing geopolitical friction. After reclaiming its 200-day moving average last month, Bitcoin has demonstrated remarkable strength in its upward trajectory. With its market dominance growing and a market cap now exceeding the earlier $1.7 trillion milestone, Bitcoin continues to cement its position as the leading cryptocurrency. Institutional capital, that erstwhile skittish participant in digital asset markets, appears to have recommitted substantial resources, providing the requisite foundation for Bitcoin’s present altitude. Media coverage, predictably, has amplified following the breach of six figures, creating a self-reinforcing cycle of attention and price appreciation.
Technical analysts now eye critical resistance at $107,000 and the psychologically imposing $120,000 threshold, while support manifests at the round-number $100,000 mark and the more substantial $92,000 region. The consolidation phase that characterized much of Q1 2025 has conclusively terminated, yielding to renewed volatility—predominantly upward.
Ethereum, meanwhile, exhibits its characteristic pattern of drafting in Bitcoin’s slipstream, with amplified percentage movements reflecting the intense activity across its ecosystem. DeFi applications and NFT marketplaces continue generating substantive network demand, while forthcoming protocol enhancements bolster its value proposition. As the cryptocurrency market’s second-in-command by market capitalization, Ethereum’s performance serves as both beneficiary and validator of the broader crypto renaissance currently unfolding across digital asset markets.
